Many people today are in desperate need for viable credit card debt solutions.
Because credit cards represent the easiest and quickest way to purchase items or obtain much-needed cash
in an emergency, credit card holders can suddenly find themselves owing card companies tens of thousands
of dollars without the means to repay the debt.
With the recession depleting just about everyone's finances over the past four years,
many of us have had to resort to using credit cards for necessities such as food,
rent and gas. Due to desperate efforts to remain solvent, consumers commonly find they can no longer
continue making monthly payments to the credit card companies because the minimum amount due has reached
$300 or more.
In addition, their financial situation may not yet have improved, creating more
stress over crushing credit card debt.
What to Do about Credit Card Debt
Credit Counseling
One of the first actions to take to avoid ruining
a credit rating is to seek credit counseling
from a legitimate credit counseling agency.
Professional credit counselors provide several valuable services to assist people suffering credit card debt
by implementing debt management plans that involve creating a budget,
talking to creditors about solving debt problems and discussing the possibility of consolidating
credit card debt.
Debt consolidation
Debt consolidation is a popular form of eliminating credit card debt.
By obtaining a loan that provides enough funds to pay off all credit cards, you are now only making
one payment a month to one place.
Credit counselors can also talk to your creditors and arrange a plan that allows you to give the
counselor one lump sum each month, which is then evenly distributed among your creditors.
Debt settlement
Debt settlement is another way to eliminate credit card debt. Debt settlement companies specializing
in negotiating with credit card companies persuade these companies to allow card holders to settle the
debt by paying a certain percentage of the debt.
For example, if someone owes $20,000 on a credit card and is severely behind in payments,
a debt settlement company will try to negotiate a lower pay-off amount with the card company.
These amounts vary but usually involve no more than 50% of the original debt.
Additionally, legitimate debt settlement companies will not ask for fees upfront before the debt
has been settled.
Bankruptcy
Considered a last resort to debt solution, bankruptcy can relieve you of credit card debt but will
also seriously harm your credit rating and may prevent you from purchasing a vehicle or home for
several years following the bankruptcy decree.
Always seek credit counseling before filing bankruptcy to see what, if anything, can be done to
reverse your financial situation.
Credit counselors will review several things before suggesting bankruptcy, such as the ability to pay off
the debt according to the long-term scenario associated with a person's financial status.
Suffering from the worry and stress caused by credit card debt that is often exacerbated by
debt collectors constantly harassing you, does not need to continue with these readily available
credit card debt solutions.
