Secrets To Credit Card Debt Relief – Debt Relief Options

Written by admin on December 7th, 2010

Part of the problem with society these days is the amount of individuals that are living with credit card debt; increasingly people are using their cards just to pay for everyday goods. People now owe thousands to finance companies because they do not realize they are spending beyond their means and by the time they do come to realize, the damage is already done. Once you have finally realized the mess you are in then it only remains to do something about it by sourcing some credit card debt relief.

The first thing to do before opting for financial help is to stop using the card all together because if this doesn’t happen it will be almost impossible to devise a debt relief plan. Making the decision can be the hardest part but no-one said credit card debt relief would be easy. Of the options available, three in particular come to mind as the best ways to approach the debt consolidation problem.

The easiest method of debt consolidation is where the person still has a good credit rating and uses another credit card that has a low rate of interest where all the debts can be transferred to one card. Consolidation loans are becoming popular as all the debts can be replaced with just one amount which should be considerably easier to pay on a regular basis.

The only problem here is that the debtor must be determined enough to stick to the plan they have made until the end. Remember, consolidation by card or loan will only work if the debtor has not already damaged their credit history.

Where credit card debt relief as an option fails, do not give up hope as the next step is a debt negotiation company. Debt relief companies usually have a good track record at this type of negotiation with the usual arrangement of around half the outstanding debt will have to be paid and any balance can be dropped.

The final option is bankruptcy which should not be taken lightly but if the debt is totally out of control and there is no way to escape from the debt trap then filing for bankruptcy may be the only way out. Once this option has been decided upon the debtor must be in no doubt that they will find it difficult to apply for any type of credit until the end of the bankruptcy as they will need to rebuild their credit rating. However you have found yourself in this situation, do not allow credit card debt relief to become a habit

You are drowning in debt and you no longer know what to do to manage your growing debt. Circumstances in your life have put you in a situation where you have to make a decision about your finances. You have decided that credit counseling cannot help you and you are considering bankruptcy, but would like to check into debt settlement before you make your final decision.

A debt settlement company, sometimes referred to as debt negotiation company, offers a service that will reduce the total amounts owed on your debts. This type of debt relief is not a loan nor is it debt consolidation. It is a last resort before filing bankruptcy. You must understand that debt negotiation will be noted on your credit negatively, but anybody contemplating bankruptcy probably already has derogatory marks on their credit report. At this point, you should be looking for away out debt and then you can work on rebuilding your credit.

Here are some of the benefits of debt settlement:
*Your debt can be reduce by 30-50%
*No homeownership is required
*An alternative to bankruptcy
*Typically, you are out of debt in 3 years or less
*No credit check
*One convenient monthly payment

While debt settlement is probably your quickest option for getting out of debt, this debt relief option does have its drawbacks. Here are a few of the disadvantages of using a debt negotiation company:
*Can negatively impact your credit
*The IRS can consider the settled difference in the debt as income (this is not the norm)
*The lender has the right to collect on the remainder of the debt (this is not the norm)

As you can see, the benefits far outweigh the disadvantages. However, debt settlement is not for everybody. If you are still making your payments on time, but see yourself getting farther in debt, you may opt for a credit counseling program. This will help you get out of debt with out as much negativity to your credit report. 

If you are have at least ,000 in debt or you are more than 3 months behind on your payments, debt settlement is a good bankruptcy alternative for your financial situation. Getting out of debt is not easy, but it can be done. Many people have a hard time knowing where to begin, but debt settlement can give you a chance to be debt-free and enjoy a more stress free life. Get started today with a debt management plan.

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