Options to Eliminate Credit Card Debt

As the vast majority of Americans, if you're fighting a huge debt of credit cards with high interest rates, suddenly you are getting this difficult to meet the minimum monthly payments. Financial problems can not only affect your stress levels, but also your health, family relations, friends, and even labor. When financial dilemmas confront us may seem insurmountable, but the truth is that they are not. The most important thing is to find a solution to the problem, requesting help from family, friends, or at best, to professional advisers. For those looking for professional help with credit card debt, there are three main options. When you have help from an expert, you can access any of these three options.

1. Bankruptcy

While necessary in some cases, the most radical and negative for your credit rating is declared bankrupt. This is a legal process during which a judge or erase the debt or arrange a payment plan for them. The two types of bankruptcy are Chapter 7 and Chapter 13. Filing bankruptcy has a very negative influence on the credit rating making it almost impossible to access credit for many years. Moreover, bankruptcy would stay on your credit history for at least 10 years, although they may ask about it during the rest of his life.

2. Consolidating debts

This is the option with which it chooses to consolidate various debts into one debt, often with an interest rate much lower. If you have a cash value on your home can apply for a loan on that value to cancel their credit card debt, becoming the only mortgage loan at low interest rate. The other, more common in the options is to hire a company to take charge of consolidation achieve lower interest rates and develop a payment plan that meets customer needs. This type of program requires a monthly fee, and extends the payment of debts within 5 years, which means you will still pay a large sum of money in interest. Finally, these programs do affect the credit rating during the entire process of almost 5 years from now, will resume the process of consolidation of credit activity.

3. Debt Negotiation

A more aggressive tactic is to consolidate debts with the negotiation of which is negotiating an agreement with a company with credit so as to clear the debt in an amount less than the current balance of the card. A professional negotiation can achieve average savings of 40-65%. This option may decrease initially much more the credit that the consolidation. While the initial effect is more severe, increasing the credit once they reached the first agreement, which may be from four to six months. Furthermore, this type of debt negotiation programs last only 2-3 years, almost half the time that a program of consolidation and have a much more significant net savings to the consolidation.

This brief summary of the options to confront the credit card debt will help you learn about potential solutions there are to counteract the effects caused by the debts of their credit cards. However, the best thing to do is be able to access professional financial advice in order to understand the options in more depth. Only then you can achieve financial independence you're looking for.