Credit Card Debt - The Best Options to Paying Back Your Debt
Credit Card Debt - The Best Options to Paying Back Your Debt
Going on a shopping spree with your credit card seems like a luxury at least till the bill arrives at the end of the month. After that starts the bigger problem of paying back all that money and suddenly you find yourself covered knee deep in debt. The creditor's phone calls start troubling and you start to worry about the legal hassles. Bankruptcy also starts coming in mind as a life saving option. Declaring bankruptcy is certainly an option, though not the best one. It can temporarily save you from the harassing calls of your creditors because of the law's restrictions until the case is completely solved.
Bankruptcy buys you some time and peace and even save you from the huge debt, but later on for the next 7-10 years it leaves you with credit points crunch and you cannot take a loan or credit card for such a long time. The best possible option nowadays to pay back your debt is to go for for debt consolidation or debt resettlement. There are many debt resettlement companies nowadays willing to help you get out of debt. They look at your financial situation, prepare a plan and a budget for you and help you stick to it. Then they try to renegotiate your debt with your creditors. they lower your debt amount by a substantial margin.
The new amount is easier to pay back in small monthly installments at low interest rates. Such companies charge little from you and some from your creditors too, but in 1 or 2 years you are free from your debt. But you must also do your part and try and save as much as possible, cut on your monthly bills and pay off that debt slowly. Taking another loan to pay back your first is not the wisest option. It leaves you more flustered.
Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.