|Posted on May 24, 2013 at 7:30 PM|
With so many sources out there claiming to help you eliminate credit card and loan debt once and for all, its difficult to find a debt settlement company that you can trust. Fortunately, money management isnt something that has to be so elusive and difficult to navigate. To eliminate credit card debt, consider:
Doing it yourself By negotiating your repayment plan with your creditor, you might find that your credit card company is willing to work with you to eliminate your current balance. Doing things yourself minimizes the risk of trusting a debt settlement company thats actually a scam. This is a proactive solution that solves your problem and protects you from potential pitfalls.
Finding a credit counselor. If your debt is too widespread and deep to handle alone, consider finding a counselor to help you with financial management. Again, to protect yourself from any scams, pick a counselor who is with a legitimate, nonprofit organization. Expect to pay reasonable fees for a debt management plan that average anywhere from $30 to $50, depending on location.
Creating a debt management plan. Working with a credit counseling agency for better money management practices is best if they help you create a debt management plan. These plans are detailed and help you make payments more manageable. This typically will not hurt your credit score, depending on how the creditor reports this to the credit agencies
Debt settlements. These are usually a money management option that you want to avoid. While you can settle your debt, high fees and commissions make this business model generally unfriendly for consumers.
Bankruptcy. For most people, seeking a bankruptcy to eliminate debt - credit card or otherwise - is their best solution. Most people try to avoid this option because of the negative stigma that is associated with bankruptcy, but this solution gives people the opportunity for a fresh financial start. Furthermore, this option isnt limited to credit cards, but can help with all types of debt and can even prevent a mortgage default. Consider meeting with a bankruptcy attorney to discuss your options and how a bankruptcy will affect your short and long term financial life.