subject: Credit Card Debt Relief - What Are the Best Possible Options For Credit Card Relief? [print this page] Credit Card Debt Relief - What Are the Best Possible Options For Credit Card Relief?
The majority of Americans today are sincerely looking for ways to get debt free. And judging by the gravity of the recession problem, there are many options available for rescuing those who are juggling with debts and loans with no means to pay back. Let us go through some of the best ones available in the market.
Credit counseling is a common relief option that you can go for in the beginning that will guide you to a debt free life. It has helped many debtors to remove their debts. But there is an important aspect that you should keep in mind. If you are in a mess of unmanageable debt or if you sense that you are about to undergo a financial crisis in near future, then approaching a credit counselor is futile.
If not than once you approach a credit counselor, he will evaluate your financial situation. You will be required to give him personal details such as income, expenses, debts and other financial commitments. Once an assessment of your financial condition is made then the counselor will suggest a debt relief measure to meet your current financial requirements and ways to cope up with debt issues. Depending on which debt solution will help you to become debt free, a consolidation, management (DMP) or settlement may be suggested.
All these solutions aim at reducing your debt burden. However they have different aspects of debt relief attached to them. Like a debt consolidation program may be well suitable for you but it may not bail out some other debtor. Bankruptcy is the most unpopular debt relief option that may give you debt relief but at the cost of your credit rating.
Keep in mind that all the debt solutions affect your credit rating but bankruptcy damages your credit rating the most. On the other hand going for a settlement has proven to be more fruitful way to eliminate debt. Those who are expert in negotiation skills and play it right get huge reductions in their accumulated credit card bills. Paying off debt more quickly helps them to gain higher credit scores.
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.
