Credit Card Debt Help

If you have high credit card debts, you're not alone. U.S families spend a considerable portion of their annual income just to payoff credit card debts!

Fortunately, if you are struggling with credit card debt that you simply can't afford to pay, or you are using your credit cards to pay for the essential things in life like food, rent, medical bills, etc. there are proven debt relief options you should consider. Credit card debt relief services have become more and more popular in recent years.

For many people debt management through credit counseling or credit card debt settlement programs have been able to provide relief. While both of these options can help you get out of debt and save money, both of them can also have an affect on your personal credit, so it is wise to consider the benefits of each program before proceeding with debt relief. To see how debt relief could help you, take a moment to answer a few questions, and you will receive a free debt relief analysis and savings estimate at no obligation. Select the type(s) of debt you have and the amount you owe using the form on the right.
 

Credit Card Debt Relief Options

In looking briefly at common credit card debt relief options, it's important to understand that both options can help you get out of credit card debt, but they are both very different in how they work. With a debt management plan through a credit counseling service, you are committing to pay back all of the debt you owe, you just may be able to pay it off much faster because creditors may be willing to reduce your interest rates, and waive fees and penalties. In this way, more of the money you pay each month goes to pay down the principal amount of your debt. Debt management plans, if you are diligent and faithful to the plan, could help you get out of debt much faster than you could on your own. Many people prefer debt management plans through credit counseling as a very honorable way to pay back debt that they have accumulated. While credit counseling may be noted on your credit report, it does indicate to your creditors that you are attempting to pay back your obligations and could even help to improve your credit as you pay down your balances over time and significantly improve your debt-to-credit ratio which accounts for roughly 35% of your overall credit score. Just make sure if you do enroll in a debt management plan that you remain on time with your monthly payments, because if you do default on your plan, creditors may not allow you to continue on the plan at reduced interest rates, but instead you may revert to the original higher rates you were paying.

Another popular debt relief option is called debt settlement or debt negotiation. This is a more serious and aggressive form of debt relief whereby high credit card debts, typically credit card debt in excess of $10,000. may be settled or "forgiven" by credit card companies for much less than the full amount owed. Typically credit card settlement programs can save between 40%-60%, depending on the credit cards you hold, the amount of debt you owe, and your financial circumstances. Credit card debt settlement will normally have a more detrimental affect on your credit than debt management because, under debt settlement, you will typically fall further and further behind in your payments to credit card companies as you put aside a sum of money that will eventually be used to negotiate a settlement with them. While you are defaulting on the payment terms of your credit cards, you may be getting calls from creditors and even letters threatening legal action. While this does not happen in all cases, it can occur.

So why would you want to explore debt settlement when it could lead to additional stress and affect your credit? Because many credit card companies, once they understand your financial situation and see how much money you've set aside to pay them off as a lump sum settlement amount, may decide it makes business sense to settle your debt for much less, rather than get little or nothing at all if you were to default entirely on your debt. Overall, debt settlement could help you settle credit card debt relatively quickly, and possibly save you thousands, or tens of thousands of dollars as well, depending on your debt level.

Many credit card companies, financial professionals, and even other debt relief professionals may cast debt settlement in a negative light, However, in today's tough times with many families in serious credit card debt and looking to explore legal debt relief options to bankruptcy, credit card debt settlement has its rightful place among debt relief solutions, and it has truly helped many people get out of credit card debt relatively quickly.

If you do decide to take advantage of legal debt relief, either through a debt management plan or debt settlement, make sure you clearly understand all the terms of your agreement prior to enrolling with any debt relief company. To receive a free debt relief analysis and savings estimate at no obligation, take a moment to answer a few questions at the top of this page.