How to eliminate credit card debt
How to eliminate credit card debt seems impossible, but it is not. You just have to want to do it. The problem is that overspending is easy. All you have to do is use your credit card and you can buy whatever you want, 24 hours a day. And then what happens? You spend more… and here comes the bill. This is when the problem starts. You owe more and more each month until your payments fall behind and your debt spirals out of control. If this is your case, don’t worry. There are solutions that can help you get back on track. We’ll take a look at a couple of popular options that show you how to eliminate credit card debt.
Option #1 – Debt Consolidation. This is a solution that helps you pay off your credit card bills faster with a lower interest rate and lower monthly payment. Let’s say you have 4 credit cards. The way it works is that instead of having to pay 4 different bills each month that add up to a large amount of money in payments, you bundle them into one loan and pay one bill that is much lower. Most of the time, the interest rate on the consolidation loan is much less than the interest rates on individual credit cards. Also, a loan payment per month is usually significantly less than the sum of the 4 payments you were making on your credit cards. This solution saves you money each month and saves you money in interest payments in the long run. It also gives you an end date. When you make the last payment on your debt consolidation loan, you eliminate your credit card debt. This solution works best for homeowners who have good to fair credit, and who have multiple credit cards that can never seem to be paid off.
Option #2 – Debt settlement. On the other hand, if you are someone (whether you own a home or not) who has bad credit because you are behind on your credit card bills, debt settlement is an option for you. This solution works best for people with bad credit, who have a total credit card debt of at least $10,000, and who are at least one month behind on their payments. If collection agencies threaten legal action, this solution may be good for you because it allows you to avoid being sued by them and saves you from having to file for bankruptcy.
The way it works is that a debt negotiator makes a settlement offer to your creditor and asks them to accept an amount that is 40% to 60% less than what you owe. They also ask for a significantly reduced monthly payment that you can afford. If the collection agency agrees to this agreement, you only have to pay the amount you offered with the lowest payment you offered, and you are not responsible for the rest. Once the agreement is reached, you can start making your new payments. When you make the last payment under your agreement, you will have eliminated your credit card debt.
Either solution will usually keep you debt free within 6-36 months, so when choosing how to eliminate credit card debt, simply choose the solution that sounds best to you. There is legitimate help available and trained professionals who understand what you are going through. They are ready and can help you recover without judging you. They act as a buffer between you and the bill collectors so you can focus on your financial recovery without them worrying you. So with that in mind, don’t be afraid to take the necessary steps to eliminate your credit card debt. It can be done, and you can do it.
ken s
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