Credit Card Debt Help
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Credit Card Debt Help
If you live in the US, and you are like most people, you have a credit card and a likely credit card debt. According to a 2017 study by Nerdwallet, the total amount of credit card debt in the United States reached an estimated $97 billion. An average home in the US has at least $15,000 in debt excluding mortgages and is paying back hundreds of dollars in interest monthly.
One of the most challenging debts is credit card debt. A lot of people get caught in the credit increase limit cycle, using credit cards to pay for medical bills, living expenses, continually taking up new credit offers. Before they know it, they are already neck deep in debts and are unsure of a way out or a path forward.
When do you need professional help?
There are no irresolvable debts. The path to settling your debt might not be easy and fast as you want, but with the right professional help, you could be on your way to being debt free. If your total debt surpasses what you can pay monthly, and you find yourself struggling to get your debt under control, then it is time to get professional help.
What are your likely solutions?
There are different ways to bail one’s self out of credit card debt, but none goes without a certain amount of sacrifice and determination. But don’t despair, there are a number of solutions that can help you gain control of your finances again. Here are some of your options:
- Debt Management Program: For those battling with keeping up with a growing pile of monthly bills, debt management programs is one of the several debt relief options to help better manage your debt profile. Signing up for a debt management program implies you will pay one of your creditors monthly instead of all your creditors individually. The debt management company you consult with would then assist you in paying off your creditors, most often after negotiating lower interest rates and payments. There is a likelyhood that your credit accounts will get closed, and you may have to forget about getting new ones for a period.
A debt management program alone is different from credit counseling, and this program isn’t for everyone. Before signing up for a debt management plan, ensure you have spoken with a certified credit counselor about your present financial predicament, and you have received professional advice on the next steps to take regarding your debt and proper money management. And if they find out a debt management program will be of help to you, ensure you take action to better your financial status under close monitoring by the credit counseling organization.
A successful debt management plan will require that you make regular and timely payments. Keep in mind that your debt management plan can take as much as 48 months, or even more in some cases.
- Debt Consolidation program: another way of reducing your credit is by a debt consolidation program. If you have good credit but you feel overwhelmed by your debt payments, you can opt for this program. How does this work? Here, all your loans are combined into a single payment; you will then have to make a single payment monthly to chip away at the balance in your credit card. This is an effective strategy to deal with high credit card balances or multiple loans. The goal of debt consolidation programs is to have lower payments at lower interest rates than what you currently have. However, before starting a consolidation program, consider getting advice from credit counselor experts.
- Debt Settlement programs: also known as debt negotiation, debt arbitration or credit settlement. Here, the debtor agrees with the creditor on a balance, most likely less than what you owe that will be regarded as full payment. While this is a great way to settle your debts, there are no guarantees that your creditors would want to settle for this option.
When you apply for this program, your monthly payments to your creditors stop. Instead, the money goes to a credit account managed by the debt settlement company. After some months, the debt management company reaches out to your creditor to settle your debt for less than what you owe. Before joining this program, consider speaking with a trusted professional for advice.
- Balance Transfer program: the burden of being saddled with debts can impact many areas of your life. If you are considering the option of a balance transfer program, then it is one step forward in the right direction towards your debt repayment. Moving the debt you owe from one credit card to another is referred to as bank transfer. Most credit card companies offer free bank transfers and a six to twenty-one-month additional introductory period to entice customers to choose their services over the competition. During this period, the customer is charged 0% interest. But you must do your due diligence before opting for this as some of the terms and conditions that come with these offers may involve unexpected charges.
How it Works
Debtco is a debt solutions referral service, and we are focused on helping people get out of debt and take control of their finances. If you are ready to take action:
1. Use our simple form to request a free evaluation
2. Debtco will connect you with an accredited credit counsellor
3. They will evaluate your unique situation and help to identify and review the best solutions for you