Finding credit debt solutions in this economy is not easy, but it is accomplishable. If you are staring at a mound of debt and credit card bills, and can not imagine being free of this dilemma, you need to change your thinking today. There are many credit debt solutions available either online or off.
Whether you’ve gotten in your financial situation through a loss of employment, illness, poor spending choices, or credit cards and mortgage payments being re-adjusted (through no fault of your own), there is hope at the end of the tunnel.
The first thing you need to do is get out every credit card bill, automobile coupon booklet, mortgage paperwork, student loan paperwork, and any other bill that you are obligated for. Make sure you have a clean area to work from, so you can track everything in an organized fashion.
Next, you are going to make a chart and list every financial obligation that you are responsible for. First, start with the debts and payments that are long term debts and include the name of the debt, the amount owed, the monthly payment, the interest rate, and the time frame in which is needed to pay off the debt. These would include, mortgages, Home Equity Line of Credits, car payments, boat payments, and student loans.
After you have completed the above, then start another chart to show only those bills that do not have a fixed monthly payment, such as credit card bills. List each one individually with the total amount due, the minimum monthly payment, the interest rate (currently listed on your statements) and the approximate time frame in which it will take to pay off the debt if only the minimum is paid.
Since most people like to see improvement, no matter how small, on your chart put the credit card debt with the smallest balance at the top. Next, put the second bill with the second lowest balance and so on. Once everything is listed in order, you now have an action plan to work from. Your goal is to make your monthly payments in a timely fashion, even if you only make the minimum payment. The top bill you need to pay extra on starting this month. As soon as that credit card bill is paid off, you take that payment and apply it to the next credit card along with the original payment you were already making. When that card is paid off, apply both payments from credit card # 1 and # 2 to the third card, with that normal payment. This will have a snowball effect and soon your payments will be dwindling.
There are many debt reduction programs on the market today. Another credit debt solution is to try debt consolidation. Debt consolidation is done by obtaining a loan to pay off all of your credit card debt and possible a few other debts. The interest rate is usually better than what you are getting with your credit card companies and the monthly payment is usually significantly less. A warning to those thinking of debt consolidation. You must stop using those cards that you have paid off. Cut them up and do not charge on them again. If you charge on them and run them back up, you are in a worse situation that where you began. Make sure the consolidation loan is paid in full before you use those cards again.
Another solution is renegotiating your loans. Contacting each credit card company by telephone and discussing this option with them is not difficult and could save you money. You might be able to renegotiate the interest rate, if you have maintained good credit with them and have continued to pay on those bills. When calling those companies, ask to speak with a supervisor and be very honest about your situation. Let them know that you are willing to work with them to get the debt paid off as soon as possible.
Many people today are turning to Christian Debt Solutions as an option to their credit debt problems. These companies have been set up nationwide and usually are based on the biblical principles of helping people get out of debt.
The last resort is bankruptcy. Since bankruptcy laws are changing quickly and vary from state to state, the best option is to contact a bankruptcy attorney for clarification of your state laws. Never follow the advice of friends and family on this one. Use a professional!
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