December 26, 2018

Credit Card Debt Relief - Is It For You?

Carol Ringwald

Carol Ringwald
Owner/Credit Medic Group

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If you are struggling financially just to make your monthly card payments than getting credit card debt relief could be a great option for you. The burden that naturally comes with debt would not only go away, but a consumer would also save a lot of money with doing this. Its impossible for anyone to predict just how much money a person would save as that depends strictly on which credit consolidation program you choose and the amount of money owed.

Considering the state of our economy it is not surprising that more and more people are in need of help these days. Debt settlement and credit counseling will be the topics for this article for those who are searching for ways in which they may find some form of relief. Both of these will provide you with the credit card debt relief you are in search of, but they are also very different kinds of credit consolidation so please read carefully.

The first form of credit card debt relief we want to discuss is credit counseling. If you decide this is the path you wish to travel down your creditors will know right away that you are in fact serious about making good on all that you owe them. Your creditors in return will also make concessions, such as lowering your interest rates, eliminate the penalties that have been accruing and waive the fees that have been added to your debt.

You will enjoy many benefits from choosing this type of credit consolidation. Your payments will be lowered every month due to the fact that your interest rates have been reduced as well as the fees and penalties being eliminated. Keep in mind as well that since more of your money will be going directly to the principal of your debt you will be living a debt free life sooner then originally planned. Nothing in life is perfect and neither is this. Credit card debt relief services such as this might appear on your credit report for a time. I wouldn’t worry much about it though, at least it will prove to the creditors that you are trying to pay them back.

The next important issue I need to discuss is that once you have joined up with a credit consolidation program make sure you hold up your end of the deal. Make sure that you make your payments and that they are on time. If the creditors believe you defaulted they can stop honoring the plan and go back to the old interest rates as well as fees and penalties.

Consumers may find that using debt settlement as an attractive way for them to get the credit card debt relief they have been searching for. What people really love about credit consolidation of this nature is creditors are actually eliminating or forgiving a large amount of the debt. A fair settlement will be negotiated between your creditors and the company that is representing you that could actually reach up to 60% of total debt. You may be wondering why they would be willing to do this. When you think about it you will realize its not all that difficult to understand. Its simple math, 40% to 60% of original debt is better then 0% of debt. Keep in mind this to will effect your credit rating. Your credit will somewhat suffer a bit until settlement is completed.

Your credit rating will increase once your debt is reported as being totally paid. If getting credit card debt relief is something you need please understand all of your options before signing anything. Credit consolidation can give you the peace of mind you’re looking for but only if you do the proper research.

Comments? You can contact me directly via my ExecRanks profile.

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