Credit Card Debt Relief: Weigh Your Options

Thousands, maybe even millions of Americans are working really hard only to give up their pay checks to the credit card companies that are gaining so much profit on monthly interest. Most of these Americans started from missing monthly payments one after another until their credit scores are affected and star dropping down and then ultimately they find themselves drowning in credit card debts. Under this distressing situation, these individuals start their rigid search on how to get rid of their credit card debts without affecting their already debilitated financial status.

The internet offers a lot of options for credit card debt relief but it seems that not all of these options work. Or maybe, some options work for some people but not for others. As if the stress involved in all these credit card debts isn?t enough, some credit card debt relief schemes even scam people out of their hard-earned money. Thus, it is very important to weigh several options before plunging into any credit card debt relief scheme to make sure it will help alleviate financial issues and not worsen them. Below is a list of some of these options:

• Debt Consolidation ? is by the most effective way to get out of credit card debts as this option could really work especially if the debtor finds a consolidation company that is really out to help people in financial distress. This option offers minimum payment and financial charge reduction by merging all credit card debts in one single debt ? and thus, one single payment. When an individual enters a credit card debt consolidation program, he is giving himself the chance and the ability to setup a payment scheme that he feels he can afford and is best for his financial situation. The payment scheme for this option is very flexible which makes this a very popular choice among credit card owners. This scheme is also famous because it is not meant to destroy a person?s credit score, but rather enhance it. Attaining a good credit standing once again is highly possible because the consumer is given the chance to pay up all his credit card debts in one monthly payment that is charged with a lower interest rate.
• Credit Card Debt Negotiation and Closure ? doesn?t really work for everybody but it could work for some. In this option, the consumer must have a correct mind set about going through closure and the possibility of bankruptcy. In credit card debt negotiation, there is a third party involved called a ?Debt Negotiator? who is responsible for obtaining a debt settlement between the consumer and the credit card company. Thus, if a consumer owns the company let?s say, $20,000, the role of the Debt Negotiator is to pull the amount down to let?s say, $10,000. This option sounds good for the person who owes as he may become debt-free in a matter of 2 or 3 years rather than 10 years of paying his credit card debt. There are some credit card companies though that wouldn?t settle unless the consumer really gives up on paying the debt or declare bankruptcy. This would definitely hurt the consumer?s credit score but if he is left with no other choice then he can take this on ? it?s that or pay the same credit card debt for the rest of his life.
• Bank?s Special Credit Card Programs ? There are banks that can answer some consumer?s credit card debt problems. These banks have developed special programs that aim to help their customers pay down their credit cards. One program is by offering loans with lower interest so that the consumer may use the loaned money to pay his credit card debts and just pay the bank monthly in a much lower interest and a much lower monthly payment. Some banks even offer automatic payment direct from a consumer?s bank account so that the consumer will not lapse on his payments. This could be very beneficial for a consumer especially with the fact that it can help rebuild his credit score. The downside however is that, not all banks would offer this program to just anybody. There are certain conditions that apply and it might not be easy to get approved but it is worth a try.
• Major Financial Revamp ? may not sound so attractive to most people but can just be the solution to their credit card debt problems. With some people spending more than they can afford through their credit cards and living a way of life beyond their capacity, a major financial revamp is certainly impossible. But for those who are willing to change their expensive lifestyle just to make sure they solve their credit card problems will not have any problem with this option. It takes a lot of discipline and planning though and if a consumer is impatient about his financial situation then this option may not be for him. This option is sometimes called a ?self-help? or ?do-it-yourself? debt relief option and only works for those who are willing to redevelop their budget and change their lifestyle.

So, which one of these options will work? It all depends on an individual?s debt level, discipline level and his future financial plans.

Source: http://johncummuta.net/credit-card-debt-relief-weigh-your-options/

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