Managing Credit Card Debt

Many Americans have seen their credit card debt mount during the past few years as a result of the difficult economic climate. Many individuals and families have fallen behind on their payments and they’re evaluating their options for lowering credit card debt. In addition many wish to put an end to the unwanted telephone calls and intimidating collection letters.

Financial pressure is one of the worst feelings in the world. Understanding that you have financial responsibilities but not having the capacity to meet them can make one feel miserable. Millions suffer a loss of sleep at night and statistics reveal that a large proportion of divorces are generated by economic stress within the household. Mounting Credit Card Debt is often at the center of this stress.

There are numerous techniques for getting out debt, a few of them are:

1. Personal bankruptcy. This ought to be your last options and it has serious consequences. While Bankruptcy generally does clear credit card debt, it also will be a matter of public record. Bankruptcy will remain on your credit report for generally 7-10 years and will make obtaining new lines of credit very difficult. Youlikely will not lose your home and you will get a fresh start. Only an attorney licensed in your state can give you legal advice as it pertains to bankruptcy.

2. Debt Settlement. If you decide that bankruptcy isn’t for you and you’ve attempted to negotiate directly together with your creditors without luck, you may wish to consider debt settlement. In this program, you opt to stop paying your bills and a debt settlement company can helps you negotiate your financial troubles with your creditors. In this program your credit score likely will decrease and there may be tax consequences. The big benefit is that youy get out of debt in 2-4 years and can likely get set up with an affordable program payments.

3. Debt consolidation. If you have excellent credit, you may be able to consolidate credit card debt with a debt consolidation loan. The upside is you may be able to get a lower payment with a lower interest rate; however, you will be sadled with a new loan and you may need to use your home or vehicle as collatoral.

Get started now to lower your credit card debts!

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