subject: Credit Card Debt Relief - Tips in Obtaining Trustworthy Information About Debt Relief Options [print this page] Credit Card Debt Relief - Tips in Obtaining Trustworthy Information About Debt Relief Options
This time the recession scars are deep and people are still struggling to get out of their debt problems. People are looking at different debt relief option to solve their financial problems. Each method has its advantages and disadvantages. A consumer needs to know about them before he commits to one of these relief methods.
Most of the experts would first ask the debtor to analyse his personal finances and come out with a plan within his means. Analysis of financials would mean making a list of all the debts that the customer has in his name. Another list with all the expenses that he makes in a month should be made. With these lists in hand and the current income coming a person will know exactly how much he has every month to pay off his debt and is it sufficient to get out of debt. Paying a minimum amount every month is not sufficient to get out of debt because of the high interest rate that gets added to the account every month.
The first step is to cut out on all the extra expenses you have been making like eating out, going to the movies etc. Use this money to pay off your debt.A customer can use his savings in order to pay off his debts. You are not earning as much from the interest rates there as you are paying to your creditors.
One can try the credit counseling. They give their clients a payment plan to be followed every month. They even negotiate with creditors for a lower interest rate.
Another good method is to use debt consolidation to replace the high interest rate loans with a low interest rate loan. Debt settlement is another method which can help reduce the debt amount.
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.
