If you are one of the millions of consumers who has found themselves deep in credit card debt, you may think there is no way out. One sure way to not find your way out is to continue to pay outrageous interest rates and the minimum monthly payment. That is a suckers bet and all you are doing is paying interest to a company that wants to keep you in debt.
If you want to end the stress of mounting credit card debt, wondering how you are going to pay the minimum amount, it is time to try a new approach. You cannot terminate credit card debt by wishing it away, you need to have a professional advocate on your side. Reputable debt settlement companies with experienced debt counselors will work with you to come up with a plan to negotiate with your credit card company for a reduced settlement of your balance.
A debt counselor will examine your accounts, see what terms you currently have, and then come up with a plan that is affordable for you. Debt counselors work with the banks every day negotiating new agreements, as the banks do not want to be left with bad debt on their books. If you fall too far behind they will be forced to sell your debt to a collection agency for about 5 cents on the dollar- $50 for a $1,000 balance! The banks want to avoid that at all costs.
Paying 25% interest will leave you in debt forever. On a $10,000 balance, that is $200 a month just for the interest.
Once you legally eliminate credit card debt with your counselors help, that money can go to much more productive uses like saving for a house or an education fund for your children.
Consumers who do allow the debt to fall too far behind will find themselves tangling with collection agencies, who are pros at what they do. Why put yourself in that position when you can avoid this by working with a debt counselor to settle credit card debt and put the stress of huge monthly bills behind you.
Working with a counselor is also a much better option than filing for bankruptcy. Bankruptcy will seriously affect your credit rating for years to come and could prevent you from receiving a mortgage, car loan, credit cards in the future, and even the ability to rent an apartment.
Once you have settled with your credit card company, and credit card debt cancellation becomes a reality, you must prevent yourself from getting in the credit card hole again. Many credit unions offer low interest rate cards, and for many, just using a debit card is the discipline they need to stay free from debt in the future. Call a credit union near you to inquire about their low interest cards.
You are not the only one to find themselves in this position, but you can be one of the few who knows about and takes the opportunity to have a professional debt counselor work with you to settle credit card debt once and for all. Your monthly income will no longer be eaten up by credit card payments, you credit will not have a bankruptcy on it, and you can now start to save money for real improvements in your life.
A free consultation will tell you what your options are, which is better than writing another check for hundreds of dollars to just cover interest again this month.