How to Refinance Your Huge Kredittkort Loan by Using Other Methods?

When you’re in debt from your credit card, you’re surely looking for ways how to handle this problem. Some people don’t realize, but going 20, 30, or more thousands in debt through your kredittkort is a serious issue and needs to be addressed right away.

To do this, you need to know how to handle the issue. Being in debt through your credit card means that you didn’t really pay attention to your spending and ended up owning the card issuer a tremendous amount. This is still not the main problem, though.

The main problem is that the interest rate on the products your bought can be tremendously high when you buy them on a credit card. When you get something impulsively and then return the borrowed over the next few months, you don’t really notice the spending, but if you do it constantly, you’ll end up not having any income, because everything will go for the credit card interest.

That’s why lots of people that have this problem decide to refinance or do some other ideas to handle the debt. If you’re feeling like you need something similar, then you should consider some of these options that we’re talking about below. Keep reading to see what your options are.

1. Get a Personal Loan

Everyone that needs money will agree that going to the bank or some other financial institution is the best way to handle the money problem. There’s a wide variety of loans and ideas for when you need a larger amount than you can actually afford or you have on your account.

Some people will try other things too, of course, but the loan is the most elegant solution. The only issue here is that it’s hard to find the right loan when the kredittkort problem is in question. When you’re aiming to refinansiering av kredittkort, you’re actually aiming for finding the money you owe, but under better terms than previously.

With thousands of lenders and dozens of dedicated loans made for specific needs of people, you understand that it’s easy for everyone to find exactly what they are looking for. If you find yourself in a similar position, then you must know what you’re looking for and what you need.

The personal loan that you can apply for will cover the entire debt. You should apply for the exact amount that will cover the whole amount so you can be sure that you’re getting it done. What’s more important is to mind the interest rate. You can return the loan through the kredittkort, but under a high interest rate.

The personal loan you’re applying for should have a lower interest rate. This is the main reason why you would apply for one. The interest rate must be several points lower than the one you have on your card. Calculate precisely and make sure that you’re getting a better deal out of it.

2. Save and achieve debt freedom

Another way to do this is by saving. Get your piggy bank and start putting coins inside. Of course, this is just figuratively speaking. To start saving, you should go through the list of spending and see where you can cut off some of the habits you have. Most people have habits that can be cut and with it, they can save a lot of money.

Nothing is more important than saving in life. It’s normal for everyone to lose their touch and start spending impulsively, but this shouldn’t be a common practice. Those who do it frequently should consider getting help because they might be shopaholics.

When you’re already deep in debt, you can start saving and achieve debt freedom. Do it by cutting some of the frequently spent money on things that are not important. If you often eat out, start cooking for yourself. If you spend money on cigarettes or alcohol, cut these unhealthy habits and see how much money you make.

Some people decide to leave their car in the garage and start going to work by bike. This is both a healthy habit and will save a ton of money for gas. After a few months, you’ll realize that every month you’ve been literally throwing away hundreds of dollars on things you don’t need.

3. Get another job

A great solution for the problem is also getting another job. If you are stuck with debt and you can’t get out of it, you might want to spend a couple of months doing some extra work and having a higher income. It doesn’t have to be a second full-time job, but a part-time that will provide just enough.

In times of a world pandemic, a lot of people decided to stay at home and work. This allows a much better lifework balance and allows you to apply for another job that you can do after the primary one, or during the first one. Learn more about what life-work balance is here.

See how things work best for you and if this idea fits, then you should definitely ask for another job. It doesn’t have to be anything official. You can try some freelancing sites, or you might want to look for something that will be great for your expertise.

4. Get passive income

Although it’s not easy to achieve, if you feel like you’re skilled, you should try to set up a business that will provide passive income. For example, if you’re a skilled graphic designer, think about setting a course that will teach others about how to do it properly.

This idea can provide a lot of money if you do it right, while the efforts are low. You should only record the lectures once, and they’ll be available online all the time.

5. Sell the things you don’t need

Think about how many unimportant things you have around your home? If you have two cars, sell one because you don’t need it when you’re in debt. If you have a boat, a wooden cabin in the woods, expensive jewelry; all these things can save you from being broke.

Having an extra car that you can sell will help you get more than $10,000 and put it in the fund of the debt. Sure, it depends on how valuable the vehicle is, it may cost way less or way more, but in general, a car is worth at least a couple of grand, which in times like these can come in really handy.

Having golden jewelry means that you can sell it and cut the debt. Gold is always valuable so you’ll surely get a great price for it. The same goes for diamonds. Find expensive items around the house, and sell them, as this can be the right way out of the crisis.