How to get Debt Help and Settle Credit Card Debt?
It is a lot easier than you think!
Credit card debt is causing stress and bringing despair to the lives of millions of Americans, it is very easy to get a credit card and spend more money than you make so the problem escalates and gets out of control easily.
How bad is it? The reality is that the average household has approximately $10,000 in credit card debt. Most Americans build up their debt by purchasing items that they do not have the cash to purchase and once the credit card bills are too high they get hard to manage because of all the interest added. Many credit card users try to keep up by paying the minimum monthly payment of their credit card bill. However, paying the minimum amount of your credit card bill will keep a person in debt forever.
Is there help for this problem? Yes, absolutely. There are several alternatives to wasting your money by paying high interest rates. We will show you the options and highlight the pro-s and cons of the available solutions:
Here is a summary of your options:
1. Keep paying what you can, and hope eventually you will be done paying all the interest that is added daily.
2. File for Bankruptcy, and ruin your credit and your financial history. This option will make it more difficult for you to get credit after the 7 years of bankruptcy. Your creditors will not get any money.
3. Consolidate your credit. This option basically consists of a loan where all your credit card balance gets put in, so the credit card companies get their all of their money plus the interest. All of the accumulated debt plus its interest has to be paid off.
4. Settle your credit. A Debt arbitrator or debt specialist contacts your creditors and arranges for you to pay a portion of your debt. In some cases your debt gets reduced by 40 to 50% of the original amount. This option ensures your debt is considered paid off and your credit report will reflect that.
Are you still confused?
Here are a few figures:
Keep paying minimum payment:
Interest will continue to accumulate faster than you pay, so the amount owed will keep increasing without your control.
File Bankruptcy:
You go to court and all your debt record will be public. Bankruptcy stays in your credit report for 10 years making it difficult for you to buy a house, car and some insurances. Bankruptcy may assure in the new future that you cannot get a credit card or low interest loans.
Get a loan and consolidate your credit:
Basically you get one more loan that encompasses all your loans into one monthly payment that you pay for 10 to 30 years. This can be very tricky because you will change your unsecured loans into one secure one. You will pay all of the debt including the interest added for the 10 to 30 year loan.
Settle your debt and satisfy your creditors:
Your debt and interest will be negotiated with your credit card company on your behalf. This option will ensure that the creditors are satisfied because they will receive a portion of the amount you owe them. You will make monthly payments usually for 12 to 36 months and will end up paying 40 to 60% off your original bills. You will be free of debt and the debt will be satisfied.
What is the difference between secured and unsecured loans?
Secured loan: credit extended to you with a collateral to secure the debt. Examples are a mortgage - which is a loan with your house as collateral, and a car loan which is a loan with your car as collateral. If you don't repay the loan, the lender repossesses the collateral by putting a lien against the home or repossessing it.
Unsecured loans: credit is extended to you with no collateral. Examples are credit cards. If you do not pay the loan the credit card company does not come in and take the purchases back.
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