subject: Credit Card Debt Relief - Tips for Dealing with Credit Card Debt [print this page] Credit Card Debt Relief - Tips for Dealing with Credit Card Debt
With the economic downturn, many Americans have found themselves suddenly out of jobs either through downsizing or companies closing their doors all together. While some people are able to bounce back and find comparable work immediately, many more find themselves under employed. Sadly, some people even find themselves unemployed for an extended period of time.
For the unemployed and those working but making an income that is far lower than their previous level, turning to credit cards live on can be a matter of survival. No one ever plans to be in that situation, but it is a sad reality that many people have experienced.
If you are in this situation, chances are you are feeling a great deal of stress. It is easy to feel like your head is in a vice and that you don't own you life anymore. Most people in this situation feel like a prisoner to their debts from time to time.
While it is perfectly normal to feel discouraged, the best thing you can do is take a breather and develop a plan to deal with your situation.
If your credit is still in good standing, then the best thing you can do is develop a budget that will allow you to start reducing your debts. Chances are, this will require some disciple to reduce your spending. You may even need to consider other ways to generate cash. You can sell things you aren't using on Ebay and craigslist. Or, if you are deeply in debt you may need to consider getting a second job.
If your credit has already taken a hit, you may need to consider other alternatives such as consumer credit counseling or credit card debt settlement. Both of these can offer debt relief, but they will do further damage to your credit score.
With credit counseling, you will work with a professional who will help you develop a comprehensive plan to deal with your debts. They will most likely negotiate with your creditors to get both your payments and interest rates reduced. This can help you get back on track. You should understand that entering into credit counseling can actually make it more difficult to obtain new credit than if you had filed for bankruptcy. Potential creditors know that you went into counseling because you were having issues managing your bills. Unlike if you actually had filed for Bankruptcy, you still have bankruptcy as an alternative to you should credit counseling not go well.
If you are able to put some cash together, you may be able to consider credit card debt settlement. While you may have heard that it is necessary to hire a firm to handle debt settlement for you, in reality the best course of action is to negotiate directly with your creditors.
