The Many Methods To Pay Credit Card Debt

Credit cards may be able to help us make purchases especially when we do not have the means to pay for our purchases in cash

. This is why sometimes it may just be too easy to get carried away with our shopping spree especially when there is a Gucci warehouse sale just around the corner. Several buyers remorse later and may find themselves buried too deep in credit card debts. Should you find yourself in such circumstances, you may feel trapped and out of options. Instead of panicking, you might want to relax, take a deep breath and explore the various ways to pay credit card debt and be rid of your debts altogether.

One method may be to settle all your credit card debts in one to three lump-sum payments. Be advised that you may only be able to do this if you have access to an amount of money huge enough for you to use it all to pay credit card debt and still have some reasonable balance left for you to live on. Of course, if you have more than enough cash to pay off your debts you are free to do so but normally you may have the option of negotiating with your creditors to reduce the amount owed. The amount to be reduced may depend on your powers of negotiation so it might be good for you to brush up on your debating skills before you meet with your creditors to negotiate the reduction of your debt.

Other than lump-sum payments, you may also negotiate with your creditors to jointly come up with a repayment schedule with lower interest rates and elimination of punitive fees. By doing this, you may not only gain the benefit of a reduction in your credit card debt amount but also the flexibility of paying off your debts in a longer period of time. Upon the discretion of your creditors, you may ask for your interest rate to be excluded for a period of time to enable you to get back on your feet and later on continue to make payments to your creditors as scheduled. Sometimes your creditors might even let you pay off your debts by paying off the principal alone without interest or any other fees and charges. You may have to bear in mind that your creditors might revoke your credit card privilege and your credit score might actually be affected. However, if you keep paying your creditors on time as per agreed schedule, you may be able to improve your credit scores in due time.

Another way to be rid of your debts may be by enrolling into a debt management program. This option may work best if you are unsure that you could face your creditors and negotiate on your own behalf. This may also be a good option if you prefer to be guided by a professional all throughout the process of getting rid of your debts. Debt management programs generally offer professional advice and assistance in the form of a debt counselor who will negotiate with your creditors and discuss with them the best options for you to pay off your credit card debts on your behalf. Enrolling into a debt management program might also cost you your credit score as it will most probably be affected. So it may be better if you would try your best to gain back your momentum and accumulate higher credit scores.

You might want to remind yourself time and time again that in your quest of obtaining debt freedom, you may still have to conduct some DIY methods to not only be rid of your debts altogether but also to keep them at bay forever. After all, you probably would not want to pay off a debt only to create another. It might be a good idea for you to prioritize and recognize the difference between needs and wants in order to free yourself of debts once and for all.

by: Ask Bill

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