subject: Ways to Eliminate Credit Card Debt Legally [print this page] Ways to Eliminate Credit Card Debt Legally
If you have lost a job or had some serious medical issues that have taken a financial toll on you, you may be behind on your bills. If you are behind on your credit card bills, you may already be getting calls from creditors who want you to make arrangements to pay them back. This may be the right time for you to consider ways to eliminate credit card debt legally.
There are actually some different ways you can eliminate credit card debt legally. One way is to file for bankruptcy. If you file for a Chapter 7 bankruptcy, the end result is that all of your debts that haven't been re-affirmed will be wiped out, or legally eliminated. This is the most drastic measure one can take, and isn't usually recommended because it really destroys your credit for seven to ten years.
Another option is to work out a settlement with the credit card companies. Often, they will settle for less than the full amount owed to them. They will forgive a portion of the debt if you agree to pay the rest of the debt. This can be a frustrating process that can take a long time. Often, people hire debt settlement companies to help them get through the process.
A debt settlement company has experience working through the details of settlements. They know how to get the best deal possible so that you will owe as little as possible after all is said and done. You can have them work with the creditors directly, rather than having to do it yourself. The debt settlement companies will look at your overall financial status and help you draw up a plan that will work for your unique situation. When the companies settle for less than what you owe them, you are legally eliminating some of your credit card debt.
The final way, which most people in challenging financial straits usually cannot follow, is to simply pay off all of your debts, thereby eliminating them. This is what you signed up to do when you got the card, but if you are in serious financial backwater, then it is not the option for you.
