Credit card debt can truly limit your financial security. Credit cards are revolving lines of credit available to individuals the typically charge a significant interest rate. If you are unable to pay your balance in whole each month the interest on your credit card can accumulate and cause long term financial difficulties. This is because credit cards require minimum monthly payments calculated to cover your interest costs and a small portion of the outstanding principal balance. By repaying a credit card balance with monthly minimum payments it will take a significant amount of time to repay the outstanding balance and the ultimate amount of interest that you pay will be very large.

Repaying a credit card balance is easy with discipline. Most people start by reducing their current expenditures and using any excess income to reduce the balance. While getting your current finances in order is a necessary step towards repaying your outstanding credit card balance, the repayment of the balance will often take a significant amount of time using this method. This is because interest will accrue on your outstanding credit card balance. Given the onerous rate of interest charged by credit cards, you may ultimately repay a significant amount before you are able to reduce your balance fully.

Some individuals try to transfer their credit card balances to other credit cards that offer introductory periods of no interest charged. While this is one way of avoiding interest on your credit card balance, there are often balance transfer fees associated with doing so. As such, you will have a larger principal balance owed even though you will save on interest charged on the balance.

Another option is using an personal or installment type of loan to repay your credit card balance. While borrowing more money to repay money you owe may not seem to be a good course of action, you can often save significant amounts by doing so. An installment loan is a loan that requires predetermined payments for a set period of time. Unlike a credit card, an installment loan is not a revolving line of credit and you can therefore not borrow additional amounts of money on an installment loan if you need it. However, installment loans typically have lower rates of interest than credit cards do. Furthermore, an installment loan provides borrowers with a structured way of repaying a loan. Some individuals need this structure more than the temptations associated with credit cards and prefer to use an installment loan to repay outstanding debt. Borrowers can also consolidate many credit cards into one larger installment loan that will limit the number of payments that have to be made each month and may therefore reduce the possibility of late payments on their balance.

Installment loans offer borrowers who are currently bogged down in credit card payments a structured way of repaying their credit card debt. Start by consolidating all of your outstanding credit card balances into an installment loan with a lower rate of interest and reduce your current expenditures so that you do not borrow additional amounts on your credit cards. Use your excess income over expenses to repay your outstanding balances and get the debt off of your back. Financial flexibility will often be the reward.