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How To Get Out Of Credit Card Debt – 5 Methods

February 13, 2012

How To Get Out of Credit Card Debt

get out of credit card debt

When asking yourself how to get out of credit card debt, you may have drew a blank as credit card debt can be very overwhelming offering no light at the end of the tunnel. No worries as that is were we come in, as we have compiled as list of different tactics that you can use starting today, that can enable you to get out of credit card debt and put an end to it for good!

How To Get Out of Credit Card Debt Methods

Before we start start these methods that will allow you your own question of how to get out of credit card debt, lets agree on one thing which is from now on you stop using your credit card and only use it for emergency situations. By stopping the use of your credit cards for most or all your transactions, this will allow you to know just about what total of debt you will need to pay off as well as this total will not go up any more, which in turn means that you will end up having to pay off less and less in interest. Okay, now that we have got that out of the way, here are your how to get out of credit card debt methods!

  1. Snowball – First off, one of the most sured fired methods of debt elimination have to do with the snowball method, which is where you take one credit card either with the highest interest and/or the highest principal and pay a lot more than the minimum on that card, in which you pay only the minimum on the other. This debt relif method will allow you to focus on eliminating one credit card debt at a time, allowing you to not get overwhelemed, which after you have paid off the highest interest/principal credit card, then you move onto the next highest interest and/or prinical credit card and use this same get of of debt method again until they are all paid off!
  2. Minimum Payment – Since we are on the subject of minimum payments, do all you can to pay more than the minimum, as the minimum payment is evil and is designed to keep you in debt for the longest time possible. For example say you have $2000 that has an 18 percent interest rate which the minimum payment is 60 a month, resulting in a 4 year pay off. But if you chance your minimum to say double, at $120 a month your you can be debt free about 20 months. Now you are able to see how powerful this how to get out of credit card debt method can be.
  3. Save for retirement! When you start saving for retirement, you will get tax writeoffs simply for doing so, which you can use that extra money to pay off your debt and even take out what you have saved and use it to pay off your credit card debt.
  4. Do it yourself – You also can try to negotiate your credit card debt with your bank or creditors through the likes of negotiating lower interest rates which in turn will let more of your monthly payments go towards paying off your principal instead of just covering the interest rate and maybe a bit more. The best way to negotiate better interest rates is to present to your creditor a sort of run down of your monthly expenses and what you are able to pay. This methods of how to get out of credit card debt also can include do it yourself settlement if you are able to pay one large payment, in which one can often be able to negotiate the lump sum payment some times half or less than what the original principal was. During this time of transferring your debt to the introductory lowe interest rate card, you will want to continuing paying your monthly dues to your creditors until the process is finished.
  5. Balance Transfer – Many banks offer you the opportunity to obtain a 0 percent interest credit card, which will allow you to tranfer all of your debt to that one card for a certain amount of time, usually for 6 to 12 months which is the time where you will want to pay off as much of that debt as possible.

If you are considering professional assistance when questioning how to get out of credit car debt, for consolidation and/or negotiation, it can be a good thing but can be pricey, but if you are unable to do it yourself these professional companies are very valuable and can assist you in not only getting out of debt, but equipt you with methods that help you not go back into debt. Success is not gauranteed this way but if you go with a professional debt elimination company, be sure to check if they are a good company, which can be done by contacting the Better Business Bureau and checking with them. If you have over $10,000 in debt seeking professional assistance is advised and can work to your benefit as many debt elimination companies offer assistance to those who have over $10,000 in debt in the form of the Obama creidt card debt relief program, which offers federal funding that offers the opportunity of having your debt total reduced by 60 percent.

Credit Card Debt Relief Programs

February 9, 2012

Credit Card Debt Relief Programs

credit card debt relief programs

Credit card debt relief programs generally assistant you with 3 or 4 different options, all of which are to lower either your debt total and/or your interest rate as well as can deal with extending the timeframe of your repayment period. Programs offering credit card debt relief can focus on one specialty of debt relief or multiple, which the option can consist of:

Credit Card Debt Negotiation – Now this can consist of both negotating your debt total as well as your interest rate. The main goal is lowering your interest rate as this will allow you to pay more debt off as more money will be going towards paying your debt prinicpal resulting in less money needed to cover the interest.

Credit Card Consoliation – This is for those who have debt with multiple creditors and are having trouble making the minimum on one or more of them. What happens here is that a credit card debt relief program will either pay off your creditors and then you will have to pay them back in the form of a loan that they lend you, which results in only having to pay one payment each month. This method can come with having to offer collateral which if you do not pay your monthly payments the collateral can be taken from you to cover for what you owe.

Credit Card Settlement – This typle of credit card relief program consists of when a large payoff is negotiated, which one pays off the entire debt at one time but the debt is often negotiated to around 30% to 50% less.

Obama Credit Card Debt Relief Programs

If you have ever came accross the topic of Obama debt relief and were skeptical, it is understandable but in actuality is is a real debt relief program offered to those who fit a certain debt criteria. In general in order to enjoy the Obama credit card debt relief program, you must be a minimum of $10,000. US ecomomy stimulation as well as debt burden reduction on the American population were the main goals of the Obama Debt Relief Act which was founded in 2009. The plan offered a total of 797 billion dollars all of which credit card debt relief companies have access to which is to be offered to those who are experiencing this debt. The way to learn more and possibly utilize this credit card debt relief program is to consult the services of a settlement company and ask them if the plan can apply to your debt situation.

Credit Card Debt Relief Programs Conclusion

Participating in one of the credit card debt relief programs can be fairly expensive and can result in having to pay interest payments on what you owe to the company you are doing business with if you go into debt with them. Considering this, you can attempt to do these debt relief methods by yourself, which can bring the same results as well as not having to consult a professional, which can be pricey as well as time comsuming as credit card debt relief programs often take months to begin. Doing it yourself can also result in a better chance to enjoy debt relief as well as better results as lenders would often rather deal with you directy instead of having to deal with a credit card debt relief company. This may require that you show good faith for a couple months and make on time payments, but it can work to your advantage as consulting professional assistance doen’t gaurantee that they will be successful in your debt relief.

If you end up seeking professional assistance, make sure that they are reputable which you can do so by browsing thorough forums on the specific credit card debt relief programs that you are thinking about working with, and especially verifying them through the Better Business Bureau whom maintiain records on reputable companies as well as scams. Debt relief in general no matter how you go about it can significantly reduce stress as well as offers a repayment that you can pay off in a fraction of the time, getting you out of debt and in the green faster as well as keeping you from having to file bankruptcy.

 

 

 

Different Types Of Credit Card Debt Negotiation & Overview Of Each

January 30, 2012

Credit Card Debt Negotiation

credit card debt negotiation

Credit card debt negotiation can be done through a variety of methods, all of which have the goal of making your life more debt free or completely debt free! Below are the major types of credit card debt negotiation methods, which will allow you to familarize yourself with the benefits as well as which one best fits what you are looking for.

Methods of Credit Card Debt Negotiation

First off, there has been a lot of speculation as to whether credit card debt negotiation damages you credit score, which the answer is yes unfortunately most likely, as negotiation doesn’t look that great according to credit bureau standards. During the negotiation process, you will most likely experience a lot less freedom when it comes the your line of credit for obvious reasons. The good thing though is that using the methods below you will either be out of debt completely or will have the ability to pay your monthly payments. Below are methods that you can utilize:

Self Negotation

If you didn’t know, you can actually try to negotiate debt on your credit card with your credit card companies. This negotiation will include trying to get a lower interest rate, which will allow you to pay more towards the prinical debt amount, and less towards just covering your interest fees. As a bi-product, often times the late fees are stopped as well. The best way to negotiate with credit card companies is to present to them what your budget looks like and how a lower payment would greatly help you, which will help them because they want to get paid. Now this can also apply to someone becoming unemployed, which credit card companies often times tend to have a soft side for and can offer forbearance, which is essentially a designated period of time in which you do not have to pay your credit card payments, in which the timeframe is negotiated depending on various factors. If in fact your debt is now with a credit agency and no longer with your original creditor, you can still try self credit card debt negotiation.

Settlement

Credit card settlement, which is another form of do it yourself credit card debt negotiation in which the person in debt presents the idea of settling their debt with one or two lump payments, in which the credit card company may or may not go for right away. If you can afford to do this and they allow you to do so, then by all means do it, but they may require you to show some good faith, especially for those who have not made payments in a few months, which they may want you to make a certain amount on on-time payments first. If your credit card company has offered you a settlement letter, have that ready when you call as well as all other information pertaining to your account, your most recent bill as along with how much you can afford to pay them. Alos it is a good call to let them tell you the amount that they are willing to settle for, and then negotating from there as you may offer to much if you speak first.

Credit Card Debt Negotiation Company

You can also employ an company who specializes in credit card negotiation, which basically they take the job of doing the grunt work of the negotation process, leaving you out of the equation, but like it was said above you must continue making your payments until the you are notified by the negotiation company that the process is finished. It is rumored that it is cheap to use this method, but often times it can be very expensive. The possibility also poses itself that if you end up owing the credit card debt negotation company, then you will end up needing to pay them as well as interest on those payments. This method is best for those who are knee deep in debt and need assistance from professionals, which when doing business with a company that offers their negotiation serivces, they will also offer debt counseling which can help one immensely and especially avoid the situation that they are in from happening again.

If you look at the fact that $10,000 in debt can take one as much as 25 years to pay off if one pays only the minimum, credit card debt negotation can allow you to get out of debt quicker as well as save you tons of money, which as you can tell both in the short run as well as the long run.

How to Reduce Credit Card Interest Rates

January 23, 2012

How To Reduce Credit Card Interest Rates

Looking for information on how to reduce credit card interest rates? If so you are in the right spot as we have a host of different methods that can drop your interest rates on your credit cards in minutes, which will allow more of your money to go towards paying off your debt instead of just going towards paying the interest!

credit card interest rates

How to Reduce Credit Card Interest Rates Starting Today

Balance Transfer – You can also drastically reduce credit card interest rates by transferring your balance to a credit card that has a lower interest rate than that of what you are paying on your current credit card. In order to be able to utilize this method, it should be know that one must have a good credit score. With this method, there are a few things you should know, the first being that these offers are not for good, the low or no interest rate time period only lasts a certain amount of time, which is where you will want to lay as much money one the balance as possible. The other main aspect of this interest rate lowering method is that you will both want to continuing paying your payments on your old credit card until the balance has gone through completely, which can take a few weeks, as well as cancel the old credit card as soon as possible so you are not tempted to use the card anymore. This method can be very powerful as there is so many credit card companies trying to compete for your business that they pretty much have to offer 0% introductory rates to get any business.

Self Negotiation - A lot of times if you actually contact your credit card provider and explain to them your current situation, they may negotiate the terms and drop your interest rate. How to reduce credit card interest rates with this method is done by contacting the credit card company that you want to pay off first, and presenting them with information on how much you can afford to pay, which means you should create a budget of your monthly spendings which will show you how much money you can allocate each month to pay that creditor. This is also a good time to negotiate the entire debt total, which can be done if you can make one or a couple large payments which will allow you to knock out the entire debt, and at a total that is usually about half of what you originally owed.

Credit Card Consolidation – Credit card consolidation can be a great tool to use when searching for ways on how to reduce your credit card interest rates. The thing is you will either need to have a good credit score or find a cosigner that does as credit score pretty much dictates interest rates when it comes to consolidation. When it comes to the benefits, this is where credit card consolidation differs from transferring your balances as consolidation benefits last for the entirety of the repayment program, instead of only lasting for only 6 to 12 months. This will also allow you to only have to pay one payment, as all your debt is grouped into one debt which you only pay one payment to the consolidation company. With this credit card interest rate rate reduction method, you can also potentially enjoy benefits like having your old late fees wiped away as well as what is called “account re-aging” which is basically taking a delinquent account and putting it back to a current account which will both help you start building up a better credit score as well as can get rid of certain fees that happened before the account was re-aged.

Good Credit Score – If you happen to have a good credit score than immediately call your creditor and request for them to reduce your credit card interest rates, which they will most likely do for you as they know if they don’t you can just go to another creditor and get a better interest rate as good credit means better interest rates, anywhere.

How To Reduce Credit Card Interest Rates In The Future

A great thing to know for the next time you obtain a new credit card is that credit card companies have 3 tiers of interest rates, with the highest being for those who are new customers, a substantial amout lower for those who have good credit as well as the best interest rates coming to those who have maintained a good paying relationship with the credit card company. So basically paying your bills on time is how to reduce credit card interest rates, which will mean that more money will go towards paying your debt instead of most of it just going to paying off the interest.

Best Credit Card Consolidation Loans

January 16, 2012

Best Credit Card Consolidation Loans

There are various factors that go into finding the best credit card consolidation loans for you and your particular debt situation but the first thing you want to comtemplate is whether you really want to use consolidation for your debt/bills as there are various different debt relief methods. The situation in which credit card consolidation is best is when one is having trouble making their even their minimum payments as well as are paying high interest rates in which the minimum payment is only really covering the interest, and maybe a small amount of the total debt. Debt consolidation can both lower interest and provide you with a fixed interest rate not variable like credit card lenders, as well as provide you with a lower overall debt total, if you find the right loan and lender.

Credit Card Consolidation Loans

How To Find The Best Credit Card Consolidation Loans

The easiest method known when it comes to finding the best credit card consolidation loan for you is to use complimentary online quote in which many lenders offer on their websites. Now you can shop around and get one online quote after another, but an more stress free method is at your avail, known as side by side comparisons which a website will allow you to get a feel for the rates of and terms of a host of different credit card consolidation providers. A couple of other tips that can help you on the pursuit of finding the best credit card consolidation loans include:

  • You will also want to contact your states Department of Banking in order to make sure that the credit card consolidation company that you are looking to do business with is licensed and providers fair services. The Better Business Bureau also keeps a tab on whether companies are reputable or not giving them different ratings depending on how good they are.
  • Read the fine print! Make sure the terms and conditions are exactly as stated before you sign anything.
  • The best consolidation loans for credit cards can also often be found with non profit consolidation companies. But many pose that they are non profit so you will want to verify their non profit status which can be done by contacting your states Department of Banking and/or asking them to provide non profit verification which will come in the form of the variation: (501(c)(3)).
  • Ask for a complimentary counseling session in which you and the credit counseler will go over how credit card consolidation will benefit you more so than your current debt situation, or if a different form of debt relief is a better option.

Best Credit Card Consolidation Loans – Alternatives

If you are looking for the best credit card consolidation loans, but happen to have one credit card that has an interest rate that is considerably lower then the rest of your cards interest rates, you can also consider doing a balance transfer in which you transfer all of your debt to one card allowing you to pay on a lower interest rate which will equate to more money going towards paying off your actual debt. If you go with this debt relief method, you will want to keep in mind that credit card rates are variable and can change on you pretty much at any given moment. You can also try to find a credit card that has zero interest for a period of time in which you can transfer your debt to that card and do everything in your power to pay off as much of the debt as possible during the zero interest timeframe.

 

 

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