Settling Credit Card Debt
If you feel like you're trapped by your credit card debt, take solace in two things: first, you're not alone. Second, there are options for eliminating credit card debt and getting back on track financially.
Many people have found that filing personal bankruptcy is the right choice to help them eliminate credit card debt. In fact, millions of Americans file bankruptcy each year.
You can arrange a free, no-obligation consultation with an attorney in your area and see if bankruptcy may be right for you. Just fill out the case review form below to get started today.
Options for Getting out of Credit Card Debt
So how can an ordinary American fight back against steadily climbing balances and ever-higher monthly bills? Here's a look at some of the options out there and how they might affect your finances.
- Credit counseling: If you aren't yet being pursued by debt collectors and think you can afford to repay all your credit card debt, credit counseling might be a reasonable option for you. Credit counseling firms offer people advice on financial management and help them set up payment plans for eliminating their credit card and other debts. If you decide to pursue credit counseling, be sure to do a background check on the company you decide to work with, and you can check their status with the Better Business Bureau.
- Debt settlement: This option is one that has the potential to work well but requires some background research on your part. While FTC guidelines regulate how debt settlement firms can and cannot collect fees for their services, it's still important to make sure you check out any company you consider using, and you can your state's BBB grade on them. Debt settlement works like this: the debt settlement representative acts as an intermediary between you and your creditors. He or she contacts your creditors and asks them to forgive your debt for less than the total amount you owe. When effective, this can be an effective way to eliminate debt, but you also may be able to contact your creditors and make this kind of arrangement on your own.
- Creditor contact: Rather than hiring other people to ask for a break on your debts, you could attempt to settle your own debts by contacting your creditors by phone and asking for a break. This takes some guts, research, and a commitment to pay whatever amount you agree on, but could save you the money you'd spend on professional services.
- Bankruptcy: This method comes with perhaps the most powerful tools for eliminating debt, as it's the only one that offers you legal protection from your creditors while your case is pending. The bankruptcy procedure is governed by federal and state laws and can come with the protection of the automatic stay.
Which Option Might be Right for You? Ask a Bankruptcy Lawyer.
The financial implications of each of these options are complex; determining which debt elimination method might work best for your finances is no small matter. If you're ready to learn more about how you might best be able to eliminate your credit card debt, take advantage of this opportunity to speak with a bankruptcy attorney in your area.