Using The Decision To File For Bankruptcy To Your Benefit

It is after you take that next stage of leveraging debt against debt that you know things are getting out of control

. This is when you begin paying off one credit card through another. Now there are motives to do this such as moving credit card debt from a high interest account to another that is doing business more helpfully for you. However you have to watch those 'deals" for the reason that frequently there are transfer fees or other hidden expenses to creep up on you. And if the lower rate is a "limited time offer", the benefit of the lower interest rate for a few months might not be worth the additional expenses. And if that new credit card carrier subsequently jacks your fees up higher than they had been on the old creditor, you are worse off than before.

When the credit card debt then begins to develop into a real dilemma the nextlevel starts to take advantage of your resources. You can take out a second mortgage and get a pretty good rate that is controlled as that is what they called a 'secured loan" which way you are using the equity of your house as collateral to fight the credit card debt. But these types of loans are dangerous as if you did fail to pay on them, you might lose your home.

When the credit card debt begins to get serious once more, even in spite of all these severe measures you have taken, you can get pretty scared. And you can get bitter since there is no doubt that the credit card firms appear to do all they can to keep you ensnared in this credit card debt as long as they can. And why shouldn't they after all? They make a lot of wealth off of your credit card debt. And they don't have to do anything to keep it rolling in.

This is why when it comes to making a decision between just starting to default on the credit card debt, it might be time to pull out the stops and go after the credit card companies to put a finish to the escalating bill. But you can put a stop to it by calling them directly and not being scared to play the ultimate card, the "B" card bankruptcy.

Now, declaring bankruptcy has become more difficult since the present administration in charge of our government made it harder for regular folks like you and I to utilize this tool to stop the constant growth of our credit debt. But it still is possible to use bankruptcy and if you do, the credit card companies might lose all of that wealth. And they know it too. Now you don't want to threaten bankruptcy unless it really is a possibility for you. But if it is and you call the credit card firms and let them know this is your next step, you suddenly have all kinds of power with them.

Once the credit card companies know you are serious about going that route, if you tell them you would like to make a deal to pay off some of the credit card debt you owe, they may be very receptive to reducing your debt by half or more. And if you can get that type of deal from every credit card company you owe and you can get them to lower your interest rate to make your capability to pay more realistic, you might be able to avoid the bankruptcy entirely. And if that is the result, you did a good job of showing the "B" card but never having to play it.

There are two free reports here to help you decide what is best for you, please click on the links below:

by: Steven Giles

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