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Credit Card Debt Relief
Best Methods for Getting Out of Debt

    credit card debt reliefDuring the past decade, the number of people seeking credit card debt relief has risen to staggering proportions. This is primarily the result of the ‘Buy Now Pay Later’ culture that has prevailed for so long, combined with the economic downturn.

    If you are in this situation, and have realized that your total debt exceeds your ability to pay, you may be feeling extremely worried. The solution, however, is not to panic, but to keep calm and understand that you do have options.

    Consider these options and decide which is right for you:

    • Credit Card Debt Settlement Companies
      Credit card debt settlement companies, otherwise known as credit card debt relief companies, is an option which may seem most attractive to you at first sight. These are for-profit companies which negotiate directly with the card companies on your behalf.

      Since 2010, these companies have been subject to a lot of additional regulation, designed to make them less risky for you -- for instance, they are no longer allowed to charge an upfront fee. However, you still need to do a lot of careful checking before you sign up with one of these companies.

      Also, bear in mind that they put pressure on you to stop making your regular repayments on your cards, and this could cause you to build up further penalties and late fees, as well as having a serious effect on your credit history. But the end result is that they can help get you out of debt.

      Credit Card Debt Consolidation
      Credit card debt consolidation is a very popular option for credit card debt relief. This option will be especially tempting if you are maxed out on several cards, or if you have other debts as well. It enables you to roll all your debts into one, and make a single monthly payment.

      You can do this either by transferring all your debts on to a balance transfer credit card, or by hiring a consolidation company, who can negotiate with the lenders and possibly reduce your interest rates. If you hire a company, you have to make sure that they are actually making the payments on your behalf.

      Another possibility of debt consolidation is to open a Home Equity Line of Credit. You can tap into the equity of your home to pay off your debt with usually very good interest rates.

      Credit Counseling A responsible way of seeking credit card debt relief is to seek the help of a credit counselor. Most counselors work on a non-profit basis and are usually located in municipal offices -- there should be a toll-free number provided on your card statement to enable you to contact a counseling service.

      The counselor will look at your overall financial situation, and work with you on a personalized plan for managing your debt and money problems. The counselor may also negotiate with the card companies on your behalf.

      Credit Card Hardship Programs Credit card hardship programs are a little-known option for credit card debt relief. Most card issuers run these programs, though they are not widely publicized.

      You should be able to contact the program via the customer service number on your statement. If you can get enrolled on the program, the lender may close your account to avoid further escalation of the debt, reduce your interest rate, and set up a constant payment plan.

    Obviously, there is no quick fix for credit card debt relief. However, that is no reason for taking an ostrich-like attitude and pretending the problem doesn't exist, or for being paralyzed by panic. If you look at the available options and decide which is best for you, you can improve your situation and get your life back.

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