If you’re looking to pay off debt, you’re not alone. According to Experian, Americans were carrying over $756 billion of unpaid credit card debt in 2020. Meanwhile, Experian’s newest data indicates that the average credit card debt is around $5,525 per person. Suffice it to say, a lot of people are searching for debt relief options.
Most methods of paying off debt require you to pay interest, which means that you could end up spending a lot of extra money as you work toward a debt-free life. While 0 percent intro APR balance transfer credit cards give you the opportunity to pay down your credit card balances before they start accruing interest, many consumers are carrying too much debt to complete the payments before the interest kicks in.
Luckily, you have alternatives. Unlock offers a new type of home equity agreement that allows you to use the equity you’ve built in your home to pay off your debt — with no monthly payments and no interest. This debt consolidation alternative could be just what you need to get out of debt, get your finances back on track and start saving for the future.
Why do consumers go into credit card debt?
Why are so many people seeking debt relief? Consumers get into credit card debt when they make purchases on credit that they cannot afford to pay off in full, even with the best of intentions. As interest charges continue to accrue, their debts get larger — as do their monthly payments. Suddenly, what seemed like a simple monthly credit card balance has turned into a full-blown debt monster.
How can you get out of this kind of credit card debt? Some people are able to make it work with careful budgeting — but if your monthly payments already feel overwhelming, cutting back on other expenses may not make much of a dent.
This is where debt becomes dangerous. Once you start believing that you’ll be in debt forever, you may start adding to your credit cards instead of paying them off. Your balances grow, your interest compounds and a debt-free life seems simply out of reach.
For some consumers, the only thing that works is a debt reset. By paying off debt in full, often with a lump sum of cash, you can get your balances back down to zero and start putting your money to better use. That’s where Unlock can help. By offering you interest-free cash today in exchange for a percentage of your home’s value in the future, you could have everything you need to pay off your debt and begin the next phase of your life.
Ways you can pay down your debt