Credit Card Debt can sneak up on anyone and by the time you realize it, you might be in over your head. The good news is there are debt relief programs that can get you through these challenging times. Most people refer to these types of services as a Debt Consolidation Program, but this usually refers to a few different ways to get out of debt.
Budget On Your Own
You might be able to pay off your credit cards on your own without realizing it. The first step is to determine what monthly payment would it take to pay off your credit cards in five years. Five years is a reasonable enough time frame in terms of affordability and resetting your financial situation. However, for this route to be realistic you need to have enough room in your budget to make a substantial monthly payment.
The second step is to create or revise your personal budget. You can use an excel spreadsheet to help you keep track of your spending. Although, there are some pretty powerful online personal finance software that will link to your bank and credit card accounts making it easy to pull the information.
After reviewing your monthly income and expenses you should know whether or not you can pay off your credit cards on your own. Remember, only making the minimum payments on high interest rates is putting you back in the rat race! If this can work for you, cheers!
Debt Relief Services
If your budget is too tight that using those options won’t work, considering hiring a professional debt relief company who can assist you.
Debt Consolidation Loan
There are two main ways to get a debt consolidation loan. You can try the almost impossible task of getting an unsecured consolidation loan (no collateral). However, you’ll need to keep in mind that most lenders are limiting unsecured debt consolidation loans to $5,000 to $7,000.
The second way would be to refinance your home and pull cash out to pay off the high interest credit card debt. The biggest challenge will be whether or not your home has any equity.
Credit Card Debt Settlement Program
A Debt Settlement Program is an aggressive approach to paying off credit card debt. It normally can take 24 to 48 months to complete a debt settlement, but it depends on the type of creditors and the amount of money that can “saved” or set aside each month. Besides bankruptcy, settling credit card debt may save the most money. However, you’ll need to be committed to setting aside money each month for settlements.
A Credit Counseling Company will set you up with a Debt Management Plan. Each month payments are made to the Credit Counseling Company who then forwards the payments to the creditors. The main benefit of a credit counseling service is getting lower interest rates which allows more of the monthly payment to go towards principal rather than interest. The downside is that since the full balance is paid back plus interest within a 60 month time frame, the payments are normally as high as the minimum payments or higher.
Most people view filing bankruptcy as a last resort to getting out of debt. Anyone considering bankruptcy should consult with an attorney. However, if you’re a good candidate for a Chapter 7 Bankruptcy the court can eliminate the debt you owe. A Chapter 13 Bankruptcy will set you up with a repayment plan with your creditors and not allow creditors to take legal action or collection calls.
If you’re unable to qualify for the other debt relief options or the risks are more than you are willing to bare, a Bankruptcy can resolve your debt.
Call To Discover The Best Strategy For You
Our trained debt relief experts will give you a free, no obligation consultation to help you discover which debt relief option is best for you, and how a bankruptcy alternative may be the right way to handle your situation. Call right now to start along the path to a debt free life today! 1-800-631-5573