If you have gathered more credit card debts than you can keep up with, then maybe it is time you considered some credit card debt relief options, choose the right one and get your finances back on track. No matter if you ended up in this situation because you spent without thinking or due to causes that were beyond your control, you should know that there are solutions.
Of course, nothing comes easy, and you should expect plenty of paperwork, lost time and energy, people unwilling to help and hearing terms that sound like Chinese. Turning to a credit counselor is the best way to find the credit card debt relief solution for your needs and find out what to do in order not to end up in this situation again. Each solution comes with advantages and disadvantages, so analyze them carefully making your decision. Find more information here – http://www.toptenreviews.com/money/debt/best-debt-consolidation-companies/.
Main credit card debt relief options
Debt settlement, also known as debt resolution or debt negotiation, involves negotiating better settlements with the creditors. The purpose is to lower the principal you owe or, in the best case, convince creditors to cancel the debt.
If you play your cards right, your lenders could agree to lessen the terms of your loan, extend the repayment period and even exempt you from paying certain costs and penalties. In order for this to happen, it is vital that you go to your lender as soon as you realize the extent of your financial problems, before running behind on your payments.
Of course, there is no guarantee that your lenders will agree to this, and you have no way to force them, since you agreed to the terms of the loan when you took it.
It involves applying for a new loan or credit card in order to pay off the other debts, reduce interest rates and be left with only one monthly payment, lower than the sum of the ones being consolidated.
The consolidation loan or credit card can be taken from one of the lenders you are already in debt to or from a third party. In order to get the best deal, it is important to study the market carefully, paying attention to interest rates, closing costs, repayment period and the effect the consolidated debt would have on your credit scores.
It means working closely with a credit counselor, reviewing your financial situation and identifying the best debt relief options for you. It could provide some benefits, but it will also involve certain costs, so make sure you know what you are getting into from the very beginning.
It is important to understand that obtaining credit card debt relief will be in vain if you go back to your old ways and abuse your credit cards again, so, no matter what option you choose, learn to control your impulses and use your credit cards wisely.