Debt Relief, Consolidation and Settlement Programs
The number of Americans carrying credit card debt has been steadily increasing in recent years. In addition, people are beginning to rack up credit card debt on more than one account and are holding higher amounts on each. For many people, this rotating credit card debt has become a serious problem.
This is why we have created a resource for easy access to the information you need concerning your credit card debt. You can explore our website to get the latest news about the credit card industry, find out the rules and regulations of your state, and learn about debt managment, counseling, negotiation and settlement programs. In addition, new articles are placed often for you to learn more about different aspects of credit cards. Browse our site to get the information you need to be a well informed consumer.
- Learn how to get out and stay out of debt with our helpful articles.
- See where you and where you are going with your credit card debt by using our calculators.
- Read the rules and regulations of your state with our state index.
- Understand the credit card language with our glossary.
- Get important information with the section credit cards 101.
This website was created so consumers have the tools they need to make informed decisions about their financial future. Carrying a large amount of liability is stressful and worrisome. Paying off that financial burden can be made easier when you have the proper tools. With our help, you can lift that stress and start living a more rewarding, debt-free life.
Here are a few good reads to get you started on the path to a debt-free and stress-free life. Take a moment to browse these few highlighted articles as a first step.
Top Ten Things to Know about Credit Card Debt
When it comes to credit card debt, there are a few things we should know to make our lives a little easier. For starters, Americans are living the dream – via credit card debt... Read More
Good Debt vs. Bad Debt
Believe it or not, there are some types of good debt. However, there are more types of bad debt. For most Americans, it is nearly impossible to live debt free... Read More
Manage What You Owe
There are a few simple things you can do to keep your financial burdens under control. Do you sometimes wonder where all your money goes at the end of the month? Many people do... Read More
It is easier than ever before for people who have never had credit issues to suddenly find they are facing a wall of credit card debt with no money to pay it. There is no shame in being struck by an over-burdened economy, or hard times, only in doing nothing about it. There are several options available to you including doing nothing at all. It is important that you make a wise choice so that you can find a way out.
Why Credit Card Debt is Bad Even Before It Is 'Bad'
There are several reasons why having extensive credit card debt is bad even when you are still able to make monthly payments. Too many financial constraints makes it hard to get important loans for housing, cars, or other important items. The high interest rates mean you are paying many times the actual value of the articles you purchased. In some cases people find themselves paying for perishable items or intangible items such as food or vacations with credit and paying long after they have used the purchase. Credit card debt takes many years to repay, especially if you only pay the minimum amount due each month.
Top 5 Most Common Options for Dealing with Credit Card Debt
The number of Americans carrying credit card debt has been steadily increasing in recent years and the options for dealing with this liability may vary from person to person. In addition to not being able to pay down rotating bills, consumers are increasingly racking up more debt on multiple accounts and holding higher amounts on each card, every year with the average amount reaching higher than 10k per card. For many United States consumers, this rotating obligation has become a serious problem that has endangered many Americans. In fact, with a housing crisis still rampant many homeowners with high cost monthly mortgage payments that don't have credit or mortgage life insurance protection may be putting their families at risk for bankruptcy or years of interest payments on a home loan they can't afford. Outlined below are the top five options consumers often consider when dealing with credit card debt.
1. Do Nothing
Doing nothing about fiscal difficulties is a bad option long before it means not being able to pay your obligations at all. Doing nothing when you reach the point where all you can afford to pay is the minimum balances, and are maxed out at your limits is a deadly option too. The reason is simple, one missed pay check, lost money due to illness or lost wages, and you are in danger of going over your limit for being even a day late. The fees are hefty and make it difficult for anyone already struggling to pay them in time to keep from getting hit again, and then again, and again. Even if you never go over your limit or are late, by only paying the minimum monthly payment you spend years paying off small debts and interest that far exceeds the original credit amount.
The worst thing you can do for your financial stability is nothing. When you feel like you are struggling to pay even the minimum seek advice on how to manage your credit card debt in a more productive manner, consider debt consolidation or credit counseling.
2. Getting a Debt Consolidation Loan
Getting a debt consolidation loan doesn't seem to make much sense right on the surface. You are already having problems paying your bills and you are going to get a consolidation loan. Yes you are going to use that consolidation loan to pay off all of the bills and hopefully have a smaller monthly payment for the single consolidation loan. The trouble with this type of solution is two-fold. You are not really getting rid of the fiscal rotation obligations, you are merely replacing it, and you have all of that plastic cleaned and clear and ready for more spending. Statistics show that this solution often leads to even worse circumstances within 5 years. People who choose to get a debt consolidation loan slowly end up building up balances on the paid off cards until they once again have that balance and also the loan that originally paid them off.
Going this route of getting a consolidation loan requires extreme discipline. Make closing the credit card accounts mandatory upon getting the consolidation loan. Some banks will even close the accounts for you so that you cannot reacquire the balances. Getting a bank loan for debt consolidation loan is easier than it sounds too. You will have to have adequate collateral and you are risking your home or other important assets to cover the cost of paying off balances not necessarily associated with those assets. Along with collateral you will need to have a great credit report history. Just because you seek this option before you become delinquent or regularly miss payments does not mean you have good credit report. Having too much credit card debt as opposed to income is one of the biggest factors that influence your credit report score.
3. Getting Credit Counseling
A good step to resolve credit card debt is to seek credit counseling before your problems become so overwhelming it requires more serious intervention. Your credit counseling professional may suggest one or more of the other options as well as credit counseling to control your budget, or simply work with you to develop better budgeting skills. If you get help from a credit counseling professional quickly when troubles start it is very likely a good plan for financial spending is all you will need. Making that one simple decision to get help from a credit counseling professional and learn how to control your money is the wisest choice you could ever make. It will pay off long after your original balance troubles have been solved. It is a skill that you can use to make sure you never get into that spot again.
There are drawbacks to credit counseling. In many programs you are required to pay them the amount of your monthly balances to pay your creditors along with a fee. This can make it even harder to pay your bills and many people find it difficult to maintain. Missing a month terminate your program leaving you back to paying your monthly bills on your own once more. These programs usually do not negotiate smaller payments so you will have to pay off the entire amount of your balances.
If you can avoid this solution at all it is best to find a different way to conquer your credit card debt. The long-term effects of filing bankruptcy are often frustrating at best, and at worst are devastating. A bankruptcy will hang on your credit report history for 10 years and current bankruptcy laws make it very difficult to file as well but if you even need to access old bankruptcy records, you can look up plenty of services online to assist you. You will have problems getting loans because your credit report will be damaged for important items like homes, and cars in the future and even getting a job can be more difficult with bad credit report ratings.
5. Negotiating a Debt Settlement
Non-profit organizations that focus on debt settlement are available to help through the use of bank support to pay off your balances with no fees or charges added to your accounts after agreements have been made. In those cases you may even be paying less than the actual amount owed in order to settle the debt. Those solutions can get you out of trouble when you're sinking fast, and solve a problem quickly, but there can be long term prices to pay for such actions as a debt settlement.
This type of debt settlement can only be handled once you have missed payments on your balances. If you are still current with your payments creditors will expect you to continue to make your regular payments. Once you have become delinquent enough to encourage a debt settlement your credit history has already suffered a severe impact.
Learn From The Past
As you find your way through your current struggles make your payments on time and keep up with counseling. It might be difficult but stick it out and the end result will be worth the effort.
All too often, no matter what path people choose to solve their credit card debt problems, they find themselves right back in the same situation in a few years. Don't repeat the mistakes you made to get in your situation. Even if it was something external that caused your difficulties, such as loss of employment or income reduction, keep an eye on your fiscal responsibilities and do your best never to let it get to a level that is too hard to pay should difficult times hit.
Get Help with Credit Card Debt
We have created a resource for easy access to the information you need concerning your credit card debt. You can explore our website to get the latest news about the credit card industry, find out the rules and regulations of your state, and learn about the best ways to get out, and stay out of debt. In addition, new articles are placed often for you to learn more about different aspects of credit card debt. Browse our site to get the information you need to be a well informed consumer.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia