There are several options for those who owe a lot of money to credit card lenders and are having trouble keeping up with payments. However, there is no one solution for every individual or family who needs help. To determine which – if any – credit card debt relief options would be right for you, you should consider seeking help from a company that offers a free consultation / estimate.
Some people think that debt settlement would be right for them. However, it’s only for consumers who are experiencing a real, legitimate financial hardship. You need to provide a good reason to the creditors to work out a settlement that will be in both of your favors. However, if the situation isn’t right and you don’t take the proper steps, your credit report will still wind up getting ruined – just as much as it would with outright bankruptcy.
Speaking of which, it’s actually a myth that bankruptcy (and debt settlement for that matter) are only options when you cannot pay. There are other credit card debt relief options to consider, although the right one for you will depend on your own specific circumstances.
If you have recently lost your job, for instance, and you have not yet done so, start calling the creditors and letting them know. Ask for forbearance, or permission to start making smaller payments for a limited number of time. You might even be permitted to make no payments at all – although there will still be interest during that period and you might have to make up for it all in the future anyway.
Credit Card Debt Relief Options With Non-Profit Organizations
There are non-profit debt management or credit counseling programs you can look into. These are often sponsored by the creditors themselves and a good way to begin the process of eliminating debt and getting back on track. This kind of program or management plan typically involves in the individual putting a very small percentage of “payment” each month – plus a fee to the counseling agency – into an account, the money from which will be used towards paying back the debt.
If this really is not an option for you, or your credit card companies don’t seem interested in allowing you this option, then you should consider a consolidation loan. If your credit score is still decent enough, you might qualify for an unsecured loan. If it isn’t, then it still might be worthwhile to get a secured consolidation loan.
To find out more about credit card debt relief options and whether a loan, settlement, repayment management plan, or even bankruptcy would be right for you, get a free consultation with a company like CuraDebt. Reviews are mostly positive and the organization is in good standing with the AFCC.