subject: Debt Relief From Credit Cards - Know Your Debt Relief Options [print this page] Debt Relief From Credit Cards - Know Your Debt Relief Options
Credit cards are an easy way to get money for those that are between paychecks or who simply don't make enough to buy everything that they desire, but if used incorrectly they can easily accumulate a lot of debt with an interest that is usually quite high. If you find yourself in this situation it's only natural that at some point you will have to start looking for ways in which to get rid of this debt, especially if you own more than one credit card.
The financial market has a few options to offer, depending on the sum that you owe or how you want your life to look in a few years. Bankruptcy should really only be a last resort, because it puts a large dent in your credit score, one that you will recover from extremely difficultly, and because it's very likely that it will also go on your legal record and affect your ability to get a new job.
Debt consolidation is the first thing you should look at, especially if your debt in not that substantial. It implies getting a loan, often from government money so that you can pay off all of your debt faster and without so much interest. You will then be left with this debt alone, which will be a lot easier to pay off because of the lower interest involved. And although it will affect your credit score in the short term, you will be able to get it back up again in time.
Debt settlement is an option for those who owe more than ten thousand dollars, but who want to avoid the disadvantages of bankruptcy. It implies negotiating with the creditor to cut away a part of your debt, including annual fees and payment penalties, so that you may be able to pay it back more easily. This method will also mean a reduction in interest, so that you can become debt-free in about two or three years, depending on your income and budgeting skills.
Although credit card debt is very common, it doesn't mean that you just have to live with it - there are plenty of things that you can do in order to put away your money problems and start to have a brighter financial future.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.
