subject: Choosing A Debt Relief Option [print this page] Choosing A Debt Relief Option Choosing A Debt Relief Option
Unfortunately, due to the downturn of the economy, many American consumers have found themselves with overwhelming credit card debt. Not knowing where to turn, these consumers feel compelled to file bankruptcy to get it all over with. But, what if there was a way out? Would these same consumers be filing bankruptcy? Most likely not! This leads me to the reason for the article! Although, knowledge of the various debt relief options that are available is not very common, there are quite a few options.
Option 1 Working with your creditors directly. Even though it seems as though banks are really out there to harm the financial stability of consumers, that is not the case. As a matter of fact, it is imperative to the livelihood of banks that consumers continue to have the ability to spend money. Because of this, in most cases, banks are willing to work with consumers to reduce interest rates when necessary. In most cases, all you will need to do is contact the bank that issued your credit card and explain your financial hardship. If you are experiencing a true financial hardship, chances are your bank will reduce your interest rate on your credit card to help you out a bit!
Option 2 Balance transfer credit cards. If you have tried working with the bank directly and that got you nowhere, then maybe it's time to look into balance transfer options for your debt. Due to the overwhelming competition in the credit card industry, banks have been forced to offer balance transfer offers that appeal to consumers to get them to apply for a credit card. Some of these balance transfer credit cards will come with a 0% introductory interest rate that is sure to help you if you are having a hard time paying down your credit card balances. If you do decide to go this route, remember that introductory interest rates don't last forever so it is important that you agree to the standard interest rate of the credit card that you are planning to apply for.
Option 3 Home equity loans Although credit card debt may be a burden to many consumers, some of these consumers look at their way out every day. A home equity loan is usually a pretty good way to go about paying off debt as well. Unfortunately using the equity in your home to pay off your credit card debt means that you are securing your credit card debt by your home. However, if you are sure that you can pay the home equity line of credit back, this may be a great option that saves you thousands of dollars in credit card interest in the long run.
Option 4 Consider debt help If you have looked into all of the options listed above and still have no relief when it comes to your credit card debts, then it is time to talk to a professional. When choosing a debt help company remember to do your research and never agree to anything without giving yourself time to think about your decision!
