If you're overwhelmed by credit card bills & there seems to be NO WAY OUT of debt - then find the best debt relief plan for your financial situation!
Has credit card debt got you so discouraged that you don't know how you'll ever find a way out of financial trouble?
Then you need to find the right type of debt relief to fix your money problems. I used credit card debt settlement (also called debt negotiation) but there are several different types of debt relief services. Using debt settlement I saved $9,937.40, a reduction of nearly 40% - and paid off all my credit card bills in less than 2 years. Here you'll learn a few different ways to pay off your credit card bills.
If you're starting to think about bankruptcy, and you're having trouble sleeping at night, then this might be the right strategy for you. Because, you definitely won't get out of debt...
Making minimum payments each month
Paying high interest rates & outrageously high late fees and over-limit fees
Transferring balances between credit cards all the time
How Does The Debt Settlement Process Work? And Can It Really Help You Save 40-60%?
Let's start with debt settlement. Debt settlement is a process where you negotiate with your creditors to pay off (or settle) all of your credit card bills at a reduced amount - often at a savings of 40-60% from your original balance.
Whether you decide to enroll in a professional debt settlement program or negotiate settlements with your creditors on your own, the process is the same. The settlement company will require you to sign a limited power of attorney, so they can negotiate on your behalf. You'll then need to set aside money to build up a settlement fund. Once you've saved enough to make a reasonable settlement offer, you or the professional debt negotiator will negotiate with the creditor for a reduced payoff amount, typically between 25% and 50% of the outstanding balance.
Once the creditor agrees to the settlement amount, you make payment and the account is paid off. (typically listed as settled-in-full, as opposed to paid-in-full, but is determined by the creditor). You then continue putting money into the settlement fund to accrue enough money for negotiating the next settlement. Basically, the process is a cycle of saving up and setting aside money, negotiating a settlement and paying the settlement. (For more information, find answers to your most frequently asked questions about debt settlement)
How Is Settling Your Debt Different From Other Debt Reduction Programs?
These days getting into credit card debt has become very easy to do. And if you don't know what to do once your bills start piling up, trying to get out of debt is nearly impossible! After building up a LOT of credit card debt (from a business that didn't quite work out) and looking at all of my options:
Credit counseling ... debt consolidation loans ... even bankruptcy ...
The debt reduction strategy I finally decided to use (which the credit card companies definitely do NOT want you to know about) was debt settlement. But because you must be behind in your payments, and it really affects your credit, it is not the right option for everyone.
Here's an overview of some of the other debt reduction strategies you can use:
Credit counseling programs and debt management plans are great options for most people. Companies that offer this service work with the banks and can get you lower interest rates and lower payments, so more money goes to paying off your debt (and less goes to the banks in the form of interest). There can be a small charge, but it is usually very low and well worth it. You must stop using your credit cards, so for some people this is difficult, and helps explain why statistics show that nearly 75% of all people DON'T stick with it until the end. But if you are commmitted to getting out of debt, this is an option you should definitely consider.
Debt consolidation loans are an option for home owners (forget personal loans since the interest rate is so high). If you do own a home, and have some equity (owe less than the house is worth) you may be able to get a loan at a much lower interest rate than you are paying on your credit cards. And at a lower payment. Sounds great, but there are some risks. First, if the housing market falls and your house value goes down, you may end up owing more than the home is worth and won't be able to sell it without taking a loss. Second, if you can't make the payments due to job loss or other emergency, you risk losing your home to foreclosure. So while this can be a very appealing option, think about this very carefully.
Debt snowball and debt avalanche (paying off your credit bills in order of smallest balance or highest interst rate, respectively) are good "do-it-yourself" debt relief methods. Starting with the smallest balance gives you the quickest results and is more motivating when you see a balance disappear. Starting with the highest interest rates might not work as fast but is more effective in reducing high interest debt. Either way, you need to manage the process carefully and keep track of your progress, so if you are not well organized this option is not the best one for you.
Transferring your balances to different credit cards you get in the mail can help you lower your interest rates. If you are self disciplined and can keep careful track of your payments and interest rates (and when the low balance transfer rates expire) then this can work for you. But be careful - if you keep getting new credit cards, and use them, it may even get you into more debt!
Bankruptcy can help you get out of debt faster, but because of the implications, in most cases should only be used as a last resort. You should consult with a bankruptcy attorney if you feel like this is the right option for you,
If you have any questions, I am be happy to share with you my experiences using debt settlement, and how it worked for me. Just send me an email (support@debt-tips.com) with your questions and concerns, and I’ll get back to you as soon as possible. Then you can decide for yourself if debt settlement is right for you!
Get the facts about how debt settlement REALLY works. Learn how to settle your own credit card debt with free "do-it-yourself" tips from a former debt settlement industry executive & save yourself lots of time & money.
