subject: Consumer Credit Card Debt Relief - How to Eliminate Credit Card Debt [print this page] Consumer Credit Card Debt Relief - How to Eliminate Credit Card Debt
If you just found out that you've been laid off from work or your income got smaller, you need to come up with a solution not only to manage your debt, but also survive and live decently. What can you do when a lot of your income is cut off and you have to pay loans you took when you knew you could afford them? You need to decide on a debt relief method. You can choose debt settlement, debt consolidation, and debt management. These options will definitely help you eliminate your unsecured debt like credit card debt, business loans, medical loans, and even student loans.
Debt consolidation helps you pay your multiple loans by taking another loan at low interest rates. Debt consolidation companies know where you can get these loans and can help you negotiate lower interest rates. This is a great opportunity if the loans you are paying now have big interest rates and you want to get rid of them.
Another interesting option is debt management; this option is actually very educative because you also learn how to manage your debt in the process. Although it uses additional debt relief methods like debt consolidation or debt settlement, debt management companies will analyze your situation and also give you tips on how to live better and still save up money.
Financial settlement, the most popular method of them all, is actually a negotiation with your creditor. Introduced in the 80's, debt settlement only became popular in the last years because of Obama's financial plan that included stimulus money. Those money are given to people who choose debt settlement over bankruptcy to reduce a part of their debt and help them with their payments. They have to negotiate with their loan issuers in order to get that reduction and the amount reduced is paid by the government. The person is free to pay the rest of their debt in installments or lump sum.
Having debt may be scary, but when you have so many options to get rid of it things get pretty easy. Just make sure that the option you choose is the adequate option for your financial situation and you hire a professional company.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
