Credit Card Debt Relief
Debt Consolidation and Balance Transfers
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When you are struggling to keep making payments on a huge mountain of credit card debt it can feel as if your whole life is consumed by those little pieces of plastic. It can feel as if you are underwater and struggling for each breath you take. Your sleep can be affected and your overall health can be compromised. You want the problem to go away and you want it to go away now! Unfortunately that probably won’t happen, but there are things you can do to take back control of your debt and your life once again. There are ways for you to get the credit card debt relief that you deserve.Balance Transfer Could Be Right For YouA relative simple and inexpensive way to get some debt relief is to look for a credit card that is offering an introductory 0% interest rate and a no-cost transfer rate. If you can’t find a card that fits this description exactly, find one that comes close. Transfer all of your debt onto the new card with an introductory 0% interest rate. Make payments over and above the minimum on this card, paying off as much of your debt as possible before the introductory rate expires. Just prior to the expiration of the introductory 0% interest rate, look for another card with an introductory 0% interest rate and transfer any remaining balance once again. Continue making as large of a payment each month as you possibly can until your balance is finally paid in full.This method of debt relief demands that you do not use your credit cards again except for small purchases that you know you can pay off in the same month.Is a Debt Consolidation Loan What You’re Looking For?A debt consolidation loan is merely a low interest rate loan that pays off all of your high interest rate credit cards or other loans. Many people take out a home equity loan to pay off their credit cards or they may take out a personal loan if they can find one at an interest rate less than what they are currently paying on their credit cards. Be careful about exchanging unsecured debt (credit cards) for a debt secured by your home because if something should happen and you are unable to pay off an equity loan you could lose your home.If you choose debt consolidation you must destroy your credit cards and have your credit card companies cancel your accounts. You can’t continue charging on your cards once you take out a home equity loan to pay off your cards or you are simply courting disaster.Is Bankruptcy An Option?Bankruptcy should be your option of last resort. Under current laws you are required to apply for credit counseling before you can file for bankruptcy and your credit counselor will look for other options. If no other options are available a Chapter 7 bankruptcy wipes the slate clean (except for your mortgage, which you must still pay) and allows you to start your financial life over – although a bankruptcy remains on your credit report for 10 years and can make buying a house or financing a car more difficult down the line. A Chapter 13 bankruptcy restructures your loans, giving you additional time to pay them off. A Chapter 13 bankruptcy can restructure (but not eliminate) your mortgage, giving you a lower mortgage payment for at least 3 to 5 years and allowing you to catch up on all of your debt.If you are burdened by too much debt and feel you have no way to ever repay it, then you should seek a solution as quickly as possible. Waiting around for “things to magically get better” is not a good option and generally makes matters worse. If you are honest with your creditors many of them will bend over backwards to try to find a solution to your problem.TSC Sources & Recommended Resources:
