Posted on October 26, 2009 at 1:09 am What are the debt reduction/elimination options for a consumer who has found herself in a $50,000 credit card debt? Share your thoughts!

Posted on October 26, 2009 at 1:31 am What are the debt reduction/elimination options for a consumer who has found herself in a $50,000 credit card debt? Share your thoughts!First, is the account past due? If so there's a good chance for that balance to be negotiated down to more or less half via debt settlement. The consumer can also try to do a do it yourself settlement...although that might not get the consumer the best offer.

Posted on October 26, 2009 at 1:39 am What are the debt reduction/elimination options for a consumer who has found herself in a $50,000 credit card debt? Share your thoughts!"The consumer can also try to do a do it yourself settlement...although that might not get the consumer the best offer."I agree - the negotiators in the debt settlement company have worked with almost all the creditors and know how much each settle for. If the consumer is wondering how much the program costs..If  one owes $10,000, the monthly payment will be about $150.00/month.  If  one owes $20,000, the monthly payment would be about $300.00/month. For a $50,000 debt, the consumer would pay $750.That should be lower than his/her regular monthly payment..

Posted on October 26, 2009 at 2:48 am What are the debt reduction/elimination options for a consumer who has found herself in a $50,000 credit card debt? Share your thoughts!Speaking of fees, debt settlement companies will usually charge 15% of the total debt amount and spread the fees out over 18 months. Or, they will take a percentage of the settlement amount, usually between 20-25%.

Posted on October 26, 2009 at 2:51 am In case debt settlement doesn't work, would bankruptcy also solve that consumer's $50,000 credit card debt problem?

Posted on October 26, 2009 at 2:53 am In case debt settlement doesn't work, would bankruptcy also solve that consumer's $50,000 credit card debt problem?Another question to ask is, why would debt settlement not work? What would necessitate a bankruptcy filing instead?

Posted on October 28, 2009 at 2:12 am Having a sizeable amount of debt--$50,000 credit card debt, even--is quite daunting indeed. And I agree--debt settlement will help you get that taken care of.

Posted on October 28, 2009 at 8:58 am We are in the same boat, but to the tune of  $60,000.  We have come up with a plan and a budget that should work if we stick to it.  We sold something of value for $6750, put $750 in a savings account for emergencies, and put the remaining 6k in a separate account only used to pay credit cards.  We plan on making minimum payments on all cards with the exception of 1 card in which we will make more than minimum.  When that card is paid off we will move on to the next. (snowballing).  We have a third account for everyday use, food mortgage, car, utilities etc.  We have a budget set up for every item we spend money on and we track it monthly.  We are at a point where we can't wait to see our bills and find out how much under budget they came in at.  If they happen to come in over budget, we can adjust as needed.  This budget will allow us to save about $400 per month which will be split between savings and our credit card fund.  Any other extras like tax returns, bonuses, extra checks etc will get split as well.  We'll keep feeding the credit card fund and keep snowballing the payments, paying off 1 card at a time--eventually, we will be out from under this debt (est. 5 years).  I can not even tell you how free and in control we already feel.  Good Luck --KC 

Posted on October 28, 2009 at 1:22 pm This is to KC - it sounds like you have a great plan and seem to be committed to your goal.  What is important is that your significant other share the same committment.  If not, then your plan will not succeed.  United you stand, divided - you fail. I am in a similar situation, but not as much debt.  However, my partner does not share my committment and will overspend.  He spends to make him feel better about himself.

Posted on October 28, 2009 at 2:24 pm