Do you feel as if you were dead meat being circled by those vultures called debt collectors? Or maybe they’re just credit card companies harassing you. In either event, being seriously in debt is no fun. It can actually tear couples apart, keep you from buying a house, increase the cost of your auto and homeowner’s insurance and maybe even get your wages garnished.
The good news is that there are ways to get out from under that debt – ranging from the easy to be painful. Here are eight of them.
”Snowball” your credit card debts
Do you have several credit cards? If so, you might “snowball” them. All you need to do is make a list of your cards with their balances and interest rates. Begin by paying off the card that has the highest interest rate but keep making the minimum monthly payments on the other cards. As soon as finish paying off that card, you can use the money you freed up and begin paying off the card with the second highest interest rate and so on.
Get a signature loan
If you owe less than $10,000 you could get a signature or unsecured loan and use this money to pay off your credit card debts. However, if you owe more than the $10,000, this might not be feasible.
Try a consumer credit counseling agency
You could go to a credit counseling agency where you’ll be assigned a counselor. He or she will help you develop a debt management plan (payment plan). Your counselor will also negotiate with your creditors to get your plan approved and your interest rates reduced. You will then no longer have to pay your creditors. Instead, you’ll send just one check a month to the credit counseling agency, which will most likely be less than the sum of your current payments.
Increase your payments
Check out your credit card statements. Look for what you’re being charged for interest versus the minimum monthly payment required. The odds are that minimum payment covers just the interest and does nothing to lessen your balance. If you find this is the case, you need to start making more than the minimum monthly payments. If not, you could actually be in debt forever.
Negotiate with your credit card providers
If you have been unable to make payments on your credit cards for more than six months, you may be able to negotiate with your credit card companies to settle your debts. You will need to call each of them and offer to settle your debt for 40% or 50% of what you owe. If you can convince them to either accept your offer or you will file for bankruptcy, many of them will accept your offer. Spoiler alert – you will have to have the cash in hand to make the settlements.
Deal with your non-revolving debt first
Pay off your automobile loans and other non-revolving debt first. If possible, double up on the payments to get rid of those loans as fast as possible and then use the money you’ve freed up to start paying off your credit card debts.
Declaring bankruptcy is the painful solution. This is because it will stay in your credit record for 10 years. A chapter 7 bankruptcy will dismiss much of your unsecured debts, such as credit card debts, but not all of them. For example, it will not get rid of student loan debts, child support or alimony.
Let us settle your debts
We have helped thousands of American families achieve debt relief through debt settlement. It’s a better solution then do-it-yourself debt settlement for most people as our debt counselors have excellent working relationships with the credit card companies and are very skilled negotiators. Call our toll-free number today and let us explain how we could probably save you thousands of dollars. It’s just a very smart thing to do.