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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.

Credit Card Counseling Debt Consolidation

January 2, 2012

Credit Card Counseling Debt Consolidation

Credit card counseling debt consolidation can be your saving grace in getting out of debt. Good news is that both debt consolidation and credit card counseling most always go hand in hand, as when you work with a consolidation company they have highly training credit specialists which who assist you in creating a plan of attack to get you out of debt. Besides consolidating your credit card debt, debt counselorscredit card counseling debt consolidation can also assist you in managing your debt, so you don’t end up in debt again.

 

Credit Card Counseling Debt Consolidation Methods

For the most part credit card counselers will assist you in understanding 3 different forms of credit card consolidation, those of which include:

  1. Consolidating On Your Own – You can consolidate your credit cards all on your own by making a tranferring all of your debts to a credit card which requires you to pay a lower interest rate than you are paying on all of your other cards.
  2. Consolidation Negotiation – Credit card counseling debt consolidation professionals can actually reduce your entire amount of debt by as much as 60%, and get you compeletely out of debt in as little as 10 to 25 payments. This is done by communication between both your credit card companies as well as the counselers, where a lower interest rate as well as debt total is attempted to be decreased, creating a much more suitable payment plan for the one in debt.
  3. Consolidation Loan – Credit card counseling debt consolidation can also be done by taking out what is called a “consolidation loan” through a company, which comes in the form of a secure loan which are known to have lower interest rates, which will enable one to to have much lower payments as well as pay a lot less over the life of the repayment. These sort of loans for the most part require that you put up “collateral”, which is something valuable like for example a car, which if the loan payments are not paid, then the collateral is taken from the person paying off the debt.

These are the main types of consolidation methods that credit card consolidation counselers will propose, but there are other form of debt relief that are offered by credit card counseling debt consolidation companies like debt settlement and debt management programs (DMP). The goal of the counseler is to find out what method of debt relief is best for your personal debt situation.

Credit card counseling, at the end of the day should be used by those who are having serious trouble paying their credit card debt off, which the minimum payment is only covering the interest that you have to pay, and not going towards paying off your debt total. Debt consolidation counseling will enable you to work with a professional who is dedicated to getting you better terms and out of debt a lot faster, instead of going into the debt consolidation process yourself without proper education, which can add more insult to injury.

 

Eliminate Credit Card Debt – 7 Methods

December 15, 2011

Eliminate Credit Card Debt


Credit card consolidation, credit counseling and setting up a budget can be excellent tools to use when setting out to eliminate credit card debt you have, but there are other ways that you can use that can help you pay it off without having to use a settlement or consolidation company, as these companies are in business to keeping you in debt longer so you pay more interest. If you are looking for credit card debt elimination methods that actually work, look no further as well have 7 ways to do so right below!

eliminate credit card debt

  • Save For Retirement – Now this isn’t your traditional save for a rainy day tactic, it is applicable to getting your out of debt fast. When you save for retirement you get excellent tax write offs which you can use as funding to eliminate your credit card debt, as well as use the funds you saved to pay it off as well if you so choose.
  • Debt Transfer – Consider tranfering your debt to a card that has low or no interest, or just lower interest than what you are paying on now for a certain period of time, which the time period is usually up to a year. During this short period of time, this is where you buckle down and pay big on the debt, either eliminating the credit card debt for good, or leaving just a small amount left for you to pay off which you can easiily knock out after the low interest period is over. These are also referred to as balance transfers.
  • More Than The Minimum – The minimum payment has two sides to the coin, where the good part about it is that you can afford it with ease, the other side is that it is designed to keep you in debt for the longest period of time. Paying more than the minimum will both pay off your debt faster, as well as pay less in interest. The power of paying more than the mimimum can be proven evident by using a minimum payment calculator and putting in a higher minimum total than what you are paying now. You don’t even have to go through a debt settlement company to settle your debt, you can acutally negotiate the terms yourself with your credit card company.
  • Snowballing – Focus on paying your smallest account off first focusing all efforts on knocking out that debt, then shift your focus to the next smallest debt total. You can use this method to both eliminate your debt as well as instill more and more confidence as you pay off each account. This will also take away the overwhelming feeling of trying to pay all debt off at the same time. While you are dropping more than the minimum payments on the smallest debt, all you have to do is pay the mimimum on the others. Rinse and repeat! You can also try to negotiate lower interest rates on your cards during this process. You can also use the snowballing effect to eliminate credit card debt on the cards with the highest interest first.
  • Debt Settlement – Settling your debt can mean that you end up paying half or less than what you originally owe. Credit card companies want you to pay which if you are not paying they are willing to go to extensive lengths to get you to pay. Settling debt will allow you to pay off your debt in one swift move, leaving you debt free at a much lower cost.
  • Smart Shopping – Pinching pennies may be the last thing you want to do, but it can help you save big each month, which you can use to pay more than the minimum on your debt. If you were ever a student, you know exactly what bargain shopping is, so revert back to the colleges days!
  • Use No More! – Last but certainly most important is to stop using your credit card to buy things, or just save it for emergencies. This will put a halt to your debt total, which means paying less in interest as well as knowing the exact number that you need to pay off. If you are not comfortable with carrying around cash all the time, you can get a debit card and just keeping a small amount of cash in the account, allowing your to still pay with plastic.

The best part about these methods is when you use them they can eliminate credit card debt without having to file for bankruptcy which will kill your credit as well as chances to borrow money in the future. These debt elimination methods will also allow you to keep your savings in the savings account, that is unless you want to use the funds towards payin debt. Use them today to get out of debt!

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