How to get rid of credit card debt
Posted on
April 18, 2010
at
5:49 am
What are the ways? What is the quickest, cheapest and good for the credit?
Posted on
June 2, 2010
at
3:40 am
From http://www.debtfreedestiny.com/category/debt-relief/ there are ways to get out of the situation. Here are a few: - Debt Settlement. This is an aggressive approach to credit card debt relief. It involves negotiation with the credit card company to lower the amount you owe. Most times, the client can be debt free in less than 36 months. As a debt relief solution, this is for consumers who owe a substantial amount of money on credit cards and can only make minimum payments or are already behind. Next to bankruptcy, this is the least expensive and quickest debt relief option available. This was the choice for me - see my sttlements.
- Credit Counseling. This is targeted to consumers holding high interest cards and are paying above the monthly payment, yet are bothered by the high interest rates. These rates are negotiated down and the consumer is debt free in around 5 years.
- Debt Consolidation. Group your high interest credit card debt and other unsecured debt into a lower-rate loan with 1 easier to handle payment.
- Chapter 7 bankruptcy debt relief. This liquidates all your debt and relinquishes you from all responsibility to pay. This is a last ditch, extreme option due to the severe credit implications. The bankruptcy shows up as a huge negative on your credit report for at least 7 years. As a result, you will have trouble getting a home loan, an auto loan or any credit of any type for a long time.
- Chapter 13 bankruptcy debt relief. Much like a chapter 7 except you are required to pay a large portion of the debt through the court. Your disposable income is managed for as long as 5 years by the court who makes payments on your behalf. This still has all the implications of a chapter 7 on your credit report.
- Retirement accounts as debt relief. If you have a 401(k) or an IRA, it may be suitable for you to borrow against it to pay down your credit card debt. Using your retirement as a debt relief solution is not a recommended course of action as it can involve penalties and have tax implications that may worsen your financial situation further.
- Asset liquidation debt relief. If you are fortunate enough to have significant assets like boats or second homes, these could be sold and the money used as debt relief. These are called liquid assets and will be the first ones taken in a bankruptcy.
- Other Options. You could also use equity on your home as a debt relief solution. As long as the interest rate is lower, this may be suitable for you. Another possibility is balance transfers to cards with lower interest rates. Just be sure there aren’t hidden fees and charges that could darken your finances further.
Posted on
June 2, 2010
at
3:43 am
The answer to your question depends on your debt amount, account status,and capability to pay. Debt settlement might be best if you owe $10k or moreand your accounts past due. Credit counseling for debt total lower than thatand accounts current.
Posted on
June 2, 2010
at
4:25 am
If your credit is good, you can also apply for a debt consolidation loan. Only if it's good and you are sure that you are not going to default. Otherwise, forget it, because it's just going to add to your burden. Unless you have no other choice because your debt type is mostly secured. You can also consider filing bankruptcy, especially if you are being sued, so you can avail of the automatic stay provision. These are two options that are not recommended for secured debts and not desperate situations.
Posted on
June 2, 2010
at
5:55 am
Should you decide to do debt settlement, but are not sure aboutwhich company to use, or if at all, you can do a diy settlement, and you can learn more about it here /
Posted on
June 2, 2010
at
5:56 am
Or you can fill out form here at destroydebt.com, avail of the free consultation,and should you decide that you'd rather be in professional debt settlement program,get matched up to a legitimate company - free of charge - just fill out a form;
Em Rep Points:
Posted on
June 2, 2010
at
5:58 am
Here's what to look for in a settlement company:-The settlement company's program must have a fast completion time. 12-36 months.-The program must be able to protect and improve the consumer's credit standing.-Must be a member of the Better Business Bureau, BBB, for at least 5 years.-Must also have a good standing with the Chamber of Commerce-A Member of TASC - The Association Of Settlement Companies and the IAPDA or theInternational Association of Professional Debt Arbitrators
Posted on
July 22, 2010
at
1:12 am
To get out of debt, you need to: Assess Your DebtCreate a BudgetCut Your SpendingStart SavingAttack Your Debt
Posted on
July 29, 2010
at
4:37 am
Debt settlement or credit card consolidation.
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