Get Help With Your Debts Without Judgment

Credit card debt has an insidious way of accumulating without attracting much attention. You may find it easy to ignore early warning signs like balances that rise despite your best efforts to pay them down and interest rates that slowly increase with each successive statement. Like the proverbial frog that fails to realize it’s being boiled alive, you may find yourself overwhelmed by debt all at once.

Recognizing that your debts have become a problem is a crucial first step in the process of regaining your fiscal footing. Before you give up and declare bankruptcy, do your best to solve your personal debt crisis on your own. You may save thousands of dollars in legal fees and prevent untold years of damage to your credit score.

First, determine exactly how much debt you’re carrying. If you’re like most consumers, you’re using a variety of credit cards to cover your everyday expenses. Check the most recent statement for each card and add your current balances together to find the total value of your credit card debt.

Next, figure out the total monthly interest charge on each card. This may require some arithmetic: You’ll have to multiply your current balance by your card’s annual interest rate and divide by 12. For instance, a $5,000 balance that accrues interest at 20 percent will grow by roughly $83 each month.

Once you’ve determined the extent of the problem, stop the bleeding by freezing your credit card spending right away. Keep just one card on hand for emergency expenses and hide the rest in an out-of-the-way location. Avoid canceling them: Simultaneously shutting down multiple credit facilities may further damage your credit score.

It’s unlikely that all of your credit cards accrue interest at the same rate. If you want to save as much money as possible, target your most expensive card first and devote the bulk of your disposable income to paying it down. To avoid accruing penalty interest due to an avoidable late payment, continue making the minimum payments on your other cards.

After zeroing out your most expensive card’s balance, take a moment to celebrate and then repeat the process with your less-expensive cards. Don’t assume that this will be easy: You’ll encounter unexpected temptations and expenses along the way.

Depending upon the size and cost of your outstanding balances, it may be possible to work your way out of debt within a few years using this method. Unfortunately, do-it-yourself debt management doesn’t work for everyone. If your credit is less than perfect, your interest rates may be too high for you to make much headway in the fight against your debts.

If so, don’t despair. You’re not out of options.

There are plenty of debt relief choices that don’t require the intervention of a lawyer or judge. While using any form of professional help to eliminate your debts may damage your credit score temporarily, the negative effects of most debt relief methods are transitory compared to the years-long ordeal that typically follows a bankruptcy filing.

Although every personal debt crisis is unique, debt settlement may be your best bet for avoiding bankruptcy. Unlike credit counseling or debt consolidation loans, which merely reduce your interest rates, debt settlement may lower your principal balances in dramatic fashion. As a result, you’ll save thousands of dollars and wind up the debt relief process in a relatively short period of time.

Talk to a debt settlement professional today to learn more about how it works. You can call toll-free during regular business hours or fill out the free online form at any time.


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