How to eliminate credit card debt without filing bankruptcy

Tips for eliminating credit card debt without filing for bankruptcy

The changes in credit card agreements did only one thing for card holders. It put them into even more debt than before. Picky fees for various reasons, extreme interest rates raised with no warning, and exorbitant charges if the payment is even one minute late. It’s issues like these that send people seeking ways to reduce credit card debt. Can you get credit card debt forgiven without bankruptcy? The straight answer is NO.

First, the consumer should take a look at existing options for eliminating debt. The most well known method is to use a debt consolidation loan. Consolidation loans are literally a loan that consolidates all of the debts into one balance. No having to make multiple payments at random times during the month. All outstanding card balances are now under one umbrella and at a much lower monthly payment.

Be aware that there are potential problems with taking a consolidation loan. There are unscrupulous outfits out there who are willing to take advantage of the desperate consumer. These companies will do as they advertise, which is consolidate the loan. But they will do it at a higher rate of interest for a longer period of time. The debt holder will wind up servicing the debt for a lot longer than they would have been had they simply left the debt on the card.

The other side of the coin is discipline. Credit cards do not simply disappear because the balances are cleared. They’re still in the wallet, waiting to be used again. Consumers make this mistake over and over again. Putting all of the balances into one gives a feeling of getting ahead and that it’s OK to use the cards again. And nothing could be farther from the truth. The consumer will wind up back where they started if they don’t change their habits for good.

Seek out a loan consolidation company that offers a low rate of interest and counseling. Both aspects provide nothing but a world of good to the debtor. The loan will be paid off in a manageable amount of time while learning how to stay out of trouble in the future. And the best part on top of all of this? Bankruptcy has been avoided, the credit rating is untouched, and the road to eliminating debt has been started on. By doing it right, a debt consolidation loan makes for the smartest choice for financial freedom.

1. I need to file bankruptcy. What type of bankruptcy should I file
2. Chapter 7 bankruptcy rules and regulations

Leave a Reply

Your email address will not be published. Required fields are marked *