subject: Paying Back Credit Card Debt - Best Things To Do If You Cannot Repay Credit Cards [print this page] Paying Back Credit Card Debt - Best Things To Do If You Cannot Repay Credit Cards
Financial crisis can lead a company or an individual towards bankruptcy. Bankruptcy has bad impacts on your future life so it should be avoided at all costs. If you cannot repay credit cards then the following options can be helpful for you.
First of all, debt negotiation or settlement can eliminate your loans up to 50% or more. But in order to go for negotiation, you have to stop making payments to your credit card company. After three months, the credit card company will try to contact you. They may send their collectors. You can negotiate with these collectors for the settlement. It is totally legal to have debt settlement because they are charging a lot of money by applying high interest rates. So it is your right to negotiate with them. Collection companies mostly buy your debts from credit card companies in lesser price. Now, it is up to the collection company that how much money it wants to get from you in order to gain profit. If you have peaceful negotiation with these collectors then you may get a suitable offer and avoid bad remarks on your credit report.
Debt consolidation is another good option to eliminate the loans. In consolidation, you will have to take a secured loan in order to pay the unsecured loan. This loan can be taken in the shape of home equity loan or by putting your fixed assets as mortgage. A debtor feels more responsibility when his assets are in danger. So, he will try to pay the secured loan in order to save his assets. You can hire a professional counselor for help. He will talk to your credit card company and may provide you a debt management plan.
Credit counseling does not involve any kind of debt elimination but still it can help you a lot. Credit counseling is actually a training procedure. In counseling process, spending habits and resources of a debtor are studied and then a suitable debt management plan is suggested. Counseling can also help you in paying the left over debts in the debt settlement.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.
