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Credit Card Debt Relief: Information & Tips

When trying to learn more about debt relief, it's important to find in depth tutorials on the services prior to selecting a company. These services can often range from a debt management program to debt settlement programs. Regarding of the option you pursue, it's important to first speak with a highly trained specialist to discuss the situation prior to moving forward with a service. With so many types of debt relief programs being available, it’s important to know for certain which services to pursue to prevent future problems down the road. It’s our job to make this transition into one of these credit card debt relief services, as easy as possible. 

Of the debt relief options available to consumers, it’s important to understand that there is no single program for all when trying to consolidate debt. There is a huge difference between consolidation, settlement, elimination and even bankruptcy when considering your options. Unless an applicant actually speaks with someone whom genuinely cares about the consumer’s situation, many debt relief providers may try and slam the consumer into a solution that may not be in the best interest of that consumer. What our company will do here is explain and break down the 3 tips for credit card relief. Hopefully through these explanations, consumers will have better instructions on which services to pursue that way you don't find yourself drowning in debt.

Top 5 credit card debt relief tips

With unemployment expecting to only increase come 2012, many consumers are starting to live out their luxurious lifestyles on credit cards. The amount of Americans whom have credit card debt, is increasingly yearly with the average household having at least $13,500 in combined debt. Although these numbers may seem a bit scary, the fact that these consumers are not getting anywhere due to high interest rates is horrifying. In summary, we’ll begin to explain the top 5 tips for credit card debt relief and provide a short explanation on how those programs actually work.

Top 5 programs on credit card debt relief

  1. Do nothing
    The absolute worst thing a consumer can do about their outstanding debt, is to do nothing. By doing so the consumer will no longer make the minimum required payments and most likely have a lawsuit on there hands in the months to come. Consumers need to understand, that outsourcing a $500 debt to a lawyer would be to time consuming for such a low debt amount. However, when a consumer has an account that goes unpaid that’s $1,000 or more, the odds of that cardholder getting a summons or having lawyers show up to their doorstep, is extremely high. When consumers do nothing, not only will the cardholder get sued but the possibility of obtaining additional credit cards or loans will be minimal to none.

  2. Taking out a consolidation loan
    The debt consolidation loan is not a recommended method when searching for credit card debt relief. In fact, it’s not relief at all so much as it is just another problem. Although the accounts owed may reflect a zero balance, the consumer will now owe one loan to a bank. Although this may sound good, trust us it’s not. In order to obtain a credit card consolidation loan, the banks will require some sort of collateral (usually a home or some sort of physical property). The creditors know that you will get no where given you make just the minimum payments and when this happens and you default, they will foreclose on the property and sell it to make back their profit. Stay away from the consolidation loans, as it’s not a form of relief at all.

  3. Credit counseling
    Credit counseling is an excellent way when considering credit card debt relief. It’s extremely similar to the debt consolidation loan, but will not require any form of collateral. What it does is provide one monthly payment, and a reduced interest rate. Similar to the loan aspect of the program, the debt management credit counseling program will allow the consumer to have one monthly payment. The balances on the credit cards will not reflect zero, but instead each month when the minimum payments are made they will then be redirected to the creditors but on the new interest rate the debt relief company had secured for you. This program is extremely popular and of all credit card relief options, is the most recommended by our company.

    When a consumer enrolls into the credit counseling method, the creditors will need to receive a proposal from the debt management company. These proposals will notify the creditors of your commitment into the program. These proposals are often sent a week or two prior to the creditor payments being made. If a credit counseling company does not require your statements prior to doing this, head for the hills. A legitimate company will require statements, or not accept you as a client, period. By having the statements, this will rule out the possibility of mistakes and errors when making the payments on your accounts.

  4. Bankruptcy
    A horrifying legal status a consumer would file making it clear that he or she could no longer pay back the credit card debt. The long-term effects of this solution will send chills down any lenders spine.  The bankruptcy options often impair your credit score for up to 10 years and with the recent laws enforced, the courts will now audit your expenses to try and force you into credit counseling. It’s best to first try out that program voluntarily, rather than by court order.

  5. Debt settlement
    This solution can be recommended, given you pursued it through a company and not by yourself. By doing settlement on your own, the credit card companies would expect you to settle the debt in full on your own. If consumers just had 50% of the balance laying around in some bank account, would they really be in the situation they got themselves into?  When considering settlement, the companies will allow a monthly payment plan which will accumulate in a trust account. Once the funds have reached a certain level in the trust, that is when the accounts are settled out. The average settlement can range from 40% to 60% depending on the creditors owed. When considering debt settlement as a means for credit card debt relief, it's important to make sure that the companies follow the TSR laws on debt relief.

When considering settlement as a route to consolidate debt, it’s important to understand that you will fall behind on the minimum payments. This is not a repayment plan that keeps the accounts current like credit counseling. The payments made, will not go to the creditors right away but in turn will accumulate in a trust account and once certain levels were met, that is when the accounts will be settled. When considering settlement, it’s important to avoid scam companies that may low-ball quotes in order to obtain you as a client. If any settlement company make a guarantee on a settlement, that alone will spell scam. There is no guarantees involved in this program and the figures given are rough estimates on what to expect.

Although many solutions may exist for credit card debt, these are the top 5 programs for credit card debt relief. We’ve been providing assistance into these programs for roughly 7 years now and have helped thousands of consumers into these programs. In summary, credit counseling is by far the most popular solution for credit card debt relief and is by far more reputable as a solution. Before we go onto the next topic, it’s important to fully understand these 5 common solutions, what solutions to avoid and which solutions to pursue.

A few thoughts on credit card debt relief

With the downturn of our economy and unemployment skyrocketing, many consumers are finding it extremely complex to maintain the minimum payments. If your one of the consumers that are absolutely fine with falling behind or are already behind, debt settlement would be the best possible form of credit card debt relief.  However, for those consumers whom are current with the debt, the credit card debt consolidation programs, are often the best form of relief. Regardless though, neither consolidation loans or bankruptcy should be considered a form of debt relief.

thoughts on debt relief

As we’re wrapping up our thoughts on credit card debt relief, we’d like to invite consumers to talk to one of our specialists in order to find out which solution is best for the consumer. Our agents are trained to analyze a consumers situation by a mere telephone conversation. Our debt relief agents will find out if your current, behind and what solutions you do and do not qualify for. 

Credit card debt relief and your options

When considering credit card relief, it's important to discuss this with a debt professional. Many consumers often enroll into programs that have devastating results on their credit score. Since this is a frequent occurrence, consumers should pursue credit card relief with extreme caution. It's important to avoid programs like bankruptcy, loans and settlement, whereas programs like credit card consolidation is often the best route to pursue. So that there is no confusion, credit card consolidation is often labeled as credit counseling or even debt management. When considering your options for credit card relief, debt management is often the best option to pursue.

Debt relief through bankruptcy

Debt relief through debt settlement

Debt relief through debt consolidation

Debt relief services through common sense

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