subject: 3 Distinct Ways To Get Rid Of Credit Card Debt [print this page] Getting relief from credit card debt can come in different ways. There is no one solution that can be applied universally by all. You need to select from the plethora of choices available to pay off your credit card debts and seeking professional help. The end result is to achieve debt elimination and be debtfree. Look at the potential solutions below. There may be one that helps you in your present circumstances..
1. Credit card debt consolidation
If you have accumulated a large number of debts and the monthly payment process in unmanageable.. You may want to consider enrolling in a debt consolidation program were a counselor can negotiate lower interest and payment on your outstanding debt. This will result in a lower monthly payment and a single payment to make instead of various. You have to continue making monthly payments to the consolidation company who will later use that money to pay off your creditors. This is one method to get rid of credit card debt and a sound debt elimination method.
2. Credit counseling
A credit counseling agency can give you help with debt elimination. A credit counselor will give you useful advice. After assessing your financial situation, he will put into practice a budget for you so that you can get a handle on your finances and devise a debt repayment and debt elimination plan. He may also suggest that you participate in a DMP or debt management plan.. This program, DMP, is were the a consultant negotiates with your creditors a lowered interest rate and a monthly payment.
3. Credit card debt settlement
If you are in debt for an amount, which you cannot pay, then you can use debt settlement for debt elimination. Debt settlement, also known as debt negotiation, is a process where the creditor forgives a part of your outstanding debt. This leaves you with a smaller more manageable debt. The amount reduced varies and can range from 25 to 80 percent, but it usually ranges from 40-60%. Debt settlement can and will hurt your credit score. However, if you currently are not able to pay your debts on a timely basis, your credit score will be hurt nonetheless. Also the amount of debt you are forgiven may be treated as income and therefore subject to tax.
So, if you are having difficulty paying your credit card bills, seek help of one of the available debt eliminations options. Examine the options above and choose the best option that suits your circumstances.
