Secret to Getting Rid of Credit Card Debts
Americans generally have one thing in common – debt. Were you expecting something else? Sadly, whatever plans we make or whatever we claim when we are in our youth, we manage to some how get into debt. For most people, especially applies to student type loans and credit cards. Yes, college somehow changes how we do things. Next thing you know you are married with some children, a hefty mortgage, car repayments and mountains of credit card type debts. It’s now time to eliminate credit card debt today. Of course you must be asking how this can be done, and get it done today? Well, hopefully you are a movie fan because ‘Heat’ isn’t so far from the truth. Eliminating credit card debt that way is foolhardy because jail is not where you want to go. Your interest would go even higher.
Yes, everyone wants to know the secret to getting rid of credit card debts the fastest way possible. That goes without saying. The question should be – how do we start? For some of you this will be a major challenge, but for me it’s simple. Frankly the most sensible thing to do right now is to evaluate how many cards you have and how much interest you are paying on them. Yes, write it down now! How miserable does it appear? Now you need to get onto the Internet.
The Internet is a fantastic tool for searching and researching eliminating this type of debt permanently. So open up that search engine and let’s learn how to consolidate debt. You need to understand how to consolidate all those ugly balances into one much lower monthly repayment. The trump card is the interest, lower interest than you are currently dealing with. You may need to consider getting a loan or doing a transfer of your balances onto one single low interest card. The key is APR. High interest as you know is a killer. Why pay out more than you have to, right? This exercise is about getting rid of that debt now.
The fact is that paying off this type of debt takes time. Fast is not necessarily fast, but a slower and necessary process. The important thing is to lower those payments. With the help of the Internet you can research the best ways to consolidate your credit card balances and avoid bankruptcy, maybe get some advice about debt management. No time like the present, so get to it.
Bankruptcy Debt Relief
Are you buried neck-deep in debt? Do you owe a total of more than a hundred thousand dollars? Have you been repeatedly turned down by debt relief services? If so, don’t lose hope because there is still one last resort for you and that is to file for bankruptcy.
Bankruptcy debt relief has been the way out for thousands of people who have no idea of how to escape the financial hole they have inadvertently trapped themselves in. There are even individuals who have filed for bankruptcy more than once in their life.
However, before you join their ranks and go for bankruptcy debt relief yourself, you have to make sure first that there is really no other option for you.
The moment you file for bankruptcy, you will immediately be free of all existing debts. This idea might sound very appealing especially for someone who is already up against the wall in terms of financial obligations. However, you will have to completely understand the workings of the bankruptcy debt relief system before you affix your signature on the bankruptcy documents.
Probably the biggest drawback of bankruptcy debt relief is that once you are officially declared bankrupt, your Credit Bureau report will be stamped with the word 'Bankruptcy' in big, bold letters. When the lending companies see this on your record, you can be sure that they will not be sending any credit card offers your way.
Usually, your credit report will be cleared only after a period of seven years. This means that during this time, you will have to live on whatever cash you have because no creditor will be crazy enough to lend money to someone who obviously doesn’t have the means to pay for it. Of course, you can always borrow from generous relatives and friends but that would probably push down your rank in their list of favorite people in town.
Seven years can be a pretty long time and it may not be worth the initial freedom that you can get from bankruptcy debt relief. It is therefore critical that you try all alternatives first before filing for bankruptcy. There are thousands of institutions in the country that offer debt consolidation services.
Before opting for bankruptcy debt relief, it would be a good idea to consult with some of these financial experts and bankruptcy attorneys so that you can determine if bankruptcy debt relief is in fact the best option to take.
When you are at a financial website that claims to offer debt relief programs, the first thing you have to look for is whether the address and phone number of their company is listed on the site. If there is no contact information and only a P.O. Box number is supplied, that is a sure sign of a scam and you shouldn’t waste your time on that site.
If a telephone number is listed, you must try calling the debt relief program company. Communicating on the phone with an actual person is always better than just corresponding with them via email.
Debt Relief Help
Your goal in debt consolidation is to lower your overall costs. To accomplish this, you must get the lowest interest rate possible. You also need a plan to pay off your debts in 3 to 5 years. It will not be instant. Remember, you did not get here overnight so plan on a realistic time frame.
If you have a good credit rating, you may qualify for a low interest credit card as discussed in the credit card debt section. When shopping for a new credit card, be careful not to apply to more than a couple because they will do a credit check and if too many credit checks shows up on your credit report, it will hurt your overall score. Once you get the new care, transfer balances from the high interest card to the new low interest card. Destroy the old cards so you won’t be tempted to use them. Close the accounts as soon as they are completely paid off.
A home equity loan is another way to consolidate credit. If you won your home and have some equity, you may qualify for a home equity loan. Talk with your mortgage company as there are several types of home equity loans. They may offer a loan for a fixed amount for a fixed time at a fixed rate. Meaning that you know how much your interest will be as well as how much your monthly payments will be and exactly how many months before the loan is paid. The second type is a home equity line of credit. Your mortgage company will determine the equity in your home and set up a pre-approved credit limit. Interest is usually variable and you can get money at any time if you have not reached the credit limit of the line of credit.
These loans can offer good rates and most of the time the interest is tax deductible if you itemize. Many mortgage companies offer low or no closing cost for this type loan. One word of caution, if you can’t repay the loan your home is at risk of foreclosure, so proceed with caution.
Talk to mortgage companies about refinancing your home and take the difference in the amount of the new loan and the amount you owe on your home and pay off your debts. Be sure your new monthly mortgage payment is within the budget you prepared at the beginning of this report. Make sure you understand the total cost of refinancing. When you pay off these debts, remember not to start creating more debt. The objective is to get out of debt. Strict discipline is necessary here.
If you feel uncomfortable in making decisions as to what approach to take, consider credit counseling. Credit counseling agencies help you get out of debt. They work with your creditors to come up with a plan and you make one payment each month to the agency and they actually pay your bills. Don’t be late paying the agency. Most require a automatic debit from your checking account each month, so make sure the money is in the account. These plans usually are for a period of 3 to 6 years. Be careful and check out the agency you work with. If they are not reputable and pay your bills late, or not at all, it is still your responsibility to pay the debt.
The focus on my business is teaching people to follow their dream by becoming debt free and remaining debt free. We should not be a slave to our bills or debt. Most programs deal with managing your money, paying the bills but remaining in debt, broke and unhappy. I have discovered some cool videos that is filled with FREE information that will train you to take $300 and turn it into $30,000 in 6 months. That alone could get you out of debt, but there is even more video training available that could put you in financial position to retire in 12 months. I know that sounds too good to be true, however it is possible. You must believe you can do it and work at it until it happens.