Eliminating Credit Card Debt

20 Jun 2010 @ 2:20 PM

Eliminating Credit Card Debt

Bankruptcy may be your only option if you happen to be on a fixed income. There is a way to eliminating debt without having to resort to bankruptcy. Learn what you need to know to eliminate your debt. You don’t want to still be in debt after 10 years with the worst credit rating.

This has nothing to do with debt consolidation or credit counseling. You do not eliminate your debt with credit counseling, you pay back the whole balance. They only spread out your payments over time and reduce your interest rates and maybe your payment amounts. You can do away with these methods. Even though they are touted as some of the best credit debt cures you can find.

Take a minute to find out who is promoting these programs. The banks started the credit counseling organizations out there. So they have a vested interest in getting you into credit counseling.

You are left with debt settlement as a way to clear away your debt problem. Using debt negotiation you reach an agreement to pay about half of what you owe for the whole balance. In many cases if you are 3 to 6 months behind on your payments, they will be willing to settle with you.

With debt settlement, you can wipe out half your credit card debt in 18 months or less. You can get a 50% settlement on a $20,000 balance and save yourself $10,000 for example. You may be able to save more or less. But the creditors already know this because so many people are having financial difficulties. People are drowning in debt and unable to keep up with their payments let alone get the balances reduced.

The bank would rather get half of what you will than zero. They have to please their stockholders.

Best of all you can do it yourself. You could negotiate your own debt settlements and save thousands in fees. So read a book, or buy a home study course on how to DIY card debt elimination. This is the best method I’ve found to help you eliminate debt.