Digital News Report – Credit card debts can become so huge that making the minimum monthly payment may become impossible for some individuals. This isn’t uncommon, and can happen for a number on reasons. Maybe you have lost your job, or your had unexpected medical expenses. There is options to help you with debt settlement that can get you out of financial distress.
One option is to work with the credit card companies to work out a debt settlement plan. You can do your own credit card debt settlement negotiation or you can seek out someone else to do this for you, but you can contact the credit card companies and work out a plan with them without hiring someone. You may have to contact the credit card company on several occasions to get them to agree to a modified payment plan. The goal is to reduce your payments to something that you can handle each month without getting hit with more fees and interest rate hikes. By being proactive in dealing with your credit card debt, you can avoid ruining your credit score, and in the long run pay off what you owe the credit card company.
You might be so overwhelmed with your credit card debt, you don’t know where to begin. Anyone with serious debt issues should consider getting help from a credit counseling service. The government has approved credit counselors that should be sought out, because they have been approved because they will be able to help you learn to manage your money, budget your monthly expenses, and even set up a debt management plan in some cases. Sometimes they also may recommend that you file bankruptcy. You can find the government approved credit counseling companies at www.usdoj.gov/ust. A couple of states may have different credit counseling approvals that are run from the state themselves.
Bankruptcy is the final stop in clearing your credit card debt. Filing bankruptcy will ruin your credit score for the many years. Your credit score is sometimes reviewed when you apply for a job. You also may have to put up cash deposits for utility companies, and you will very likely being paying cash for everything. There are two common personal bankruptcy filings that you can do, one is Chapter 13 Bankruptcy and the other is Chapter 7 bankruptcy. Chapter 13 requires you to hire a lawyer and you need to get a credit counseling from a government approved agency six months before filing for bankruptcy. Chapter 13 allows you to set up a repayment plan that lasts between 3 to 5 years but you get to keep your property. In Chapter 7 bankruptcy you surrender your personal property such as your house or car. If you have reached the point of filing bankruptcy makes sure to seek out help to see if this is what you need to do, and hire a personal bankruptcy lawyer to help you through each step.
So if you are looking for credit card debt relief, remember there are options available to help you get out of debt. Sometimes that hardest part is making the first step in addressing the problem. Once you have found a solution to the credit card debt, chances are you will feel less stressed about the problem.
By: Victoria Brown