Credit card debt solutions that work

Obviously in order to pay your credit card bill you need to stop spending so much with it. This is an essential part of having a budget. A budget is your best weapon against debt. If you realize in time that your credit card debt is getting out of control and you can manage to stick to a strict budget, you should be able to get out of credit card debt with ease.

This is a good time to cancel all credit cards you can no longer afford so you can stop using them and start paying them off. If you can manage to pay off double your minimum payment your balance on that card will disappear within a couple of months. Another part of keeping a budget is reviewing your credit report from time to time. Checking for erroneous negatives points and fraudulent purchases should be done regularly.

If you're at the point where it seems like you may never get out of debt I strongly recommend you seek the help of a debt consolidation program. A debt consolidation service will be able to renegotiate with your creditors getting you lower rates and smaller payments. All of your bills will be consolidated into one monthly bill so its hard to forget to send in. Debt consolidation programs will be able to make it easy for you to pay off your debts so you can start saving again for the future. A good debt consolidation service will be able to get late fees and other payments wiped from your credit history and even your current balance.

Although fairly difficult, it is possible to consildate your debt on your own. By paying off all your debts with a single low interest credit card is a great way to cut back on payments and late fees. You can even go as far as calling up the creditors and requesting the the removal of late fees and request to cancel as well. There's a 50% shot you may be able to get some or all of the late fees wiped from your record. And you can then cancel your cards even if they have a unpaid balance still on them. This way you won't be able to continue spending.

This takes a great deal of time which makes debt consolidation services such a great deal. A reputable debt consolidation program will be able to do all of this for you for little to no cost to you.

The elimination of credit card debt

The overwhelming task of eliminating your debts can often seem like an uphill battle. Without the knowledge and expertise of a professional on your side, unfortunately, the odds are not in your favor. In order to reduce your debt, you have several options; however, if you want to maintain a "good credit rating", you have to pay you bills on time; anything else will cause your credit score will suffer. With that being said please consider the following:

Option 1 - Consumer Credit Counseling

Consumer Credit Counseling companies were originally established to help credit card company's recover revenue from clients that were falling behind on their bills. Choosing to use a Consumer Credit Counseling service can have negative effects on your credit that last up to 10 years. These services are also considered Chapter 13 Bankruptcy by most lending institutions. The bottom line is that Consumer Credit Counseling companies work for the creditors and banks.

By using their services, you will end up paying back your full debt, plus interest. These companies do not always provide financial relief as consumers often find out.

Option 2 - Debt Consolidation Loan

Borrowing from Peter to pay Paul is no way to get out of debt. It is however, the premise behind debt consolidation programs. Debt consolidation programs require that financial institutions provide consumer loans based on items of equity. For example, a home equity loan is used to "combine" your debts into a single monthly payment, which can often take 10 to 20 years to repay depending your on financial situation. This may seem like a viable solution in the short term, but missing payments on a secured loan could cause you to lose your home or the collateral you pledged. Many people who decide to go the debt consolidation route find themselves worse off than they originally were. It is not a good idea to exchange your unsecured debts for secured debts.

Option 3 - File Bankruptcy

While bankruptcy may seem to be the most expedient method for removing your unsecured debt, it is not, by any means, the best answer. A bankruptcy will remain on your credit record for 7-10 years and seriously affect your ability to rebuild your credit. Even after a bankruptcy has been removed from your record, you are still required to disclose it on forms and applications; even applications for employment. If you fail to answer this question truthfully it can be considered a crime. Additionally, certain types of bankruptcy can require a court-appointed trustee to control and oversee all aspects of your personal estate. Bankruptcy can have an adverse affect on your credit rating and lifestyle long after the legal matters are over. This is not a decision to be taken lightly. Bankruptcy is an option that should only be explored as an absolute last resort to solving your financial problems.

Option 4 - Debt Negotiation and Settlement Programs

Debt settlement programs provide their customers with a viable
solution to an otherwise complex problem. By helping eliminate your current debt, Debt Settlement programs allows you to regain control over your financial affairs and allow you to become debt free within a reasonable time frame. Debt settlement is fast becoming the only true option to financial recovery! However, I will say it again, even in Debt Settlement you have to pay you bills on time; anything else will cause your credit score to suffer.

Debt settlement is not a Consumer Credit Counseling Service or a
consolidation loan. Debt settlement is a legitimate and legal way of solving your debt and credit problems without the need for bankruptcy. Program Detb debst solution designed to reduce the current 40-60%. Traditionally, this goal is achieved through the negotiation of profit amounts approved by the creditors. Debt settlement program can usually be completed within 36 months or less, and most, if not all current liabilities.

Why consolidate credit card debt

Since credit card debts don't have defined loan end dates, revolving credit can stay with you for what seems like forever if you just make the minimum payments.
If all the cards have the same interest rate, then there is no need to consolidate these balances into one debt. For example if you have £3,000 outstanding on two credit cards at 18%, then there is no saving in having the balance on one card at the same interest rate.

Most credit card agreements have much higher interest rates for cash advances and they also charge a nominal fee for the cash transaction, so it is not going to be a less-expensive approach to paying off the credit card debt.

People typically look to debt consolidation to reduce their interest rate or even extend the term of the loan. Credit card debt is really open-ended, so shifting balances from one card to another isn't going to extend the term of the loan.

About the only real reason to consolidate these balances is if one credit card calculated the minimum payment as a lower percentage of the outstanding balance than the other and you are trying to free up some funds in your monthly budget. You're trying to pay things off, so you should try and pay more than the minimum payment each month.

A balance transfer to another credit card at a lower interest rate could help you pay off the card balances much faster as more of your monthly payment would be going towards the main debt instead of finance charges.

But the credit card companies are getting smarter in putting up ways so that cardholders don't keep moving on to the 0% introductory rates that so many credit card companies now offer. So make sure you understand the 'small print' credit terms and balance transfer charges if you decide to take this approach.

Conclusion

Credit card debts can cause a lot of financial stress simply because it is so easy to accrue debt on these cards, and it can take forever to repay. The danger time comes when you haven't done the maths and at the end of the 0% period, there is not enough in your savings to pay the card and all of a sudden you have credit card debts you didn't really want.

A debt consolidation loan can help you get out of the hole of a credit card, but he adds that reducing the use of credit cards. If it starts the cycle again.

Consolidating credit card debt - you can also consolidate your debt on your credit card security

Are you drowning in credit card debt? Have your minimum payments skyrocketed so that you can barely keep up with them - if you can even keep up with them?

Debt consolidation may actually be the answer for you.

Now, make no mistake - it's not a magic road to financial freedom. There are potential downsides. For instance, if you put up your house or car as collateral for the low interest loan that you use for the consolidation and then you default on the loan, you can lose your house or car. It's a serious commitment. However, if you are serious about getting out of debt, a consolidation effort may absolutely be in your best interests.

There are a couple of different routes you can choose if you are going to consolidate your debt. One way is to simply apply for a loan or a line of credit through your own bank or credit union, specifically if you have a good or long standing relationship with that institution. This has the advantage of being easier on your credit rating, or FICO score.

Another option is to choose a firm or non profit organization that specializes in helping individuals to consolidate their debt. This has the advantage of having professionals working on your case that do this for people all day long, every day. They know what they are doing, they know the ins and outs of the system, and they have relationships with the big credit card company. However, using one of these companies can count as Ding against your credit score.

As with any financial decision you must make a choice based on what is best for you, after careful consideration of all factors.