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The Best Credit Solution for Debt Relief

Credit card debt has become the scourge of the nation. US consumers owe a grand total of nearly $962 billion to credit card companies, which accounts for nearly 37% of the total consumer credit. A lot of people have fallen prey to credit card debt, which are largely due to the fact that you can buy anything anytime.

If you answer yes to at least one of the following questions, its high time you sought the best credit solution to lower your credit card debt burden:

  • You barely have any savings
  • You’re loosing a lot of sleep thinking about your credit card debt
  • You own more than 2 credit cards
  • Your debt to:income ratio is nearing 20%
  • You get cash advances in order to pay off your credit card debt
  • Your application for a loan has been rejected.
Don’t worry, it isn’t the end of the world. There are nearly 10 million other people who are deep in credit card debt like you. There’s no rocket science behind credit card debt relief. Here are some common debt relief methods available for credit card debt:

1. Debt settlement
This involves getting your credit card company to agree to a part payment of the debt owing. This is quite an aggressive approach to debt relief, and some people are able to reduce the amount they owe to 50% and be debt free within 12 – 36 months. People will have to make one monthly payment, and this is often a much cheaper and faster option than declaring bankruptcy.

2. Liquidate your assets
Often, people who have a lot of assets like land, boats, etc. will sell them off in order to pay their debts. If you’re going to follow this route, try your very best to get a good price. You don’t want to sell off your asset at something below the market price to pay off your credit card debt.

3. Get a home equity loan
In this, a person gets a loan, which is secured against his / her house to pay off the debts. The interest rate on such loans tend to be less since it is secured against the house. However, this does not address the root problem, which is bad spending habits, and just encourages you to get yourself deeper into debt. This route is recommended if you have a strong will to stay off frivolous spending.

4. Declare bankruptcy under Chapter 7
This must only be used, strictly speaking, as a last resort due to the undesirable credit implications. If you don’t have an adequate income to pay your debts, you are required to sell off your non – exempt assets and use this money to pay back the credit card company. If you don’t have any substantial assets, you don’t have to pay the company anything. This should only be used as a last resort.

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