6 Credit Card Debt Relief Options if You're Behind on Your Payments

6 Credit Card Debt Relief Options if You're Behind on Your Payments

Let's face it, a lot of the basic options for credit card debt relief don't apply if you're behind on your credit card payments. Debt consolidation loan? Forget it. Banks won't lend to people who don't make their payments. Ditto for balance transfers to lower rate cards. The credit card companies won't offer more credit if you're not making your payments. So, what are the alternatives? Here are 6 different options that can help you get rid of your credit card debt if you're behind on your payments.

1. Contact Your Creditors

If you've only begun to fall behind on payments, call the credit card companies right away. Explain that you're having trouble making ends meet and ask if they will work with you to develop a modified payment plan to reduce your payments to something you can manage. The best time to do this is between 3 to 5 months of late payments as your account has been flagged as delinquent internally, but hasn't yet been written off, which happens at the 6 month mark.

2. See a Credit Counselor

A credit counselor will work with you to assess your financial situation and help you develop a payment plan that you can manage. They often provide financial education and assist you in creating a personal budget. There are many non-profit credit counseling agencies. Be wary of ones that charge fees.

3. Enroll in a Debt Management Plan

A certified credit counselor may recommend that you enroll in a debt management plan (DMP). You will be required to deposit a fixed amount of money each month to the credit counseling agency. In turn, they will use this money to pay the credit card companies on your behalf. Because you are enrolled in a DMP, the card companies may give you some concessions such lower your interest rates or reduced fees.

4. Contact a Debt Settlement Company

Debt settlement is often a last resort before bankruptcy for credit card debt relief. A professional debt negotiator contacts your creditors to negotiate a reduction in the amount of money you owe. The Federal Trade Commission has recently come up with new rules to regulate debt settlement companies. Basically, they must provide full disclosure of what they can and can't do for you and they can't charge upfront for unperformed services. With these new rules, it's worth investigating to see if it's a viable option for you.

5. File for Bankruptcy

Filing for bankruptcy can permanently absolve you of your credit card debts. There are two types of bankruptcy: Chapter 13 and Chapter 7. If you have a steady income, Chapter 13 may help you keep your house or car. Chapter 7 requires that you give up most of your possessions. Filing for bankruptcy is very detrimental to your credit rating and will stay on your credit report for 7 to 10 years.

6. Join a Support Group

Similar to AA, there is a support group to offer people credit card debt relief. Debtors Anonymous has a 12 step program to help you recover from money issues and compulsive debt. Local chapters exist across the U.S. and internationally as well.

POST COMMENT

Instant Payday Loans For Bad Credit - Firm Support To The Deprived People Cheap Credit Report - Provides Information About Your Financial Status Car Loans for People with Bad Credit - Help You in Hard Times Non secured loans-Ignominious credit tags are no problem Things to know about Credit Cards for Bad Credit Installment Loans For Bad Credit – Small Loans For Poor Credit Holders Positive Payment History Adds to Your Credit Score Bad Credit Payday Loan – Funding despite Your Adverse Records Unsecured Loans with No Credit Check - No Weighty Paperwork Bad Credit Loans for Tenant - Easy and Fast Advances Bad credit payday loans - Avail To Sustain The Credit Score Bad Credit Unsecured Loans - Offers Funds without Any Hassles The Price You Typically Have To Pay For Poor Credit Loan Products