You know you are in a bad situation when the phone is constantly ringing, with collections agencies constantly trying to get money.  Often times people fall under financial hardships when they lose their job, have a temporary layoff, or even get sick or injured.  Other times people who have an income, overextend themselves financially and find that they cannot maintain the existing lifestyle.  If you need help getting out of credit card debt then there are a few solutions you can take.

The first and probably most avoidable solution is chapter 7 bankruptcy.  Filing bankruptcy will wipe your credit debt clean off your slate.  This means that if you owe $20,000 in credit card debt and you file for bankruptcy, you will owe nothing. Because it wipes debtor’s debt clean, it gives them a new chance to start fresh.  The one downside is that you will have a very bad credit rating for 6-8 years.  This will make trying to get a home loan or new credit card in this time very difficult.  Filling a chapter 7 bankruptcy should be the last option when it comes to eliminating credit card debt.

The next option available is debt settlement.  In debt settlement the debtors allows his accounts to default with the creditor, which the debt is then negotiated upon. 

You can either choose to deal with the creditors or your behalf or get an agency to help deal with the creditors for you. An advantage of debt settlement is that you can reduce your debt by as much as 65%.  This can give you some breathing room when it comes to make your monthly payments. 

The downside of debt settlement is that your credit history does take quite a hit.  It can take a few years for your credit to recover back to a normal state; however, this allows you to regain some financial control in your life.  Another negative is that if you do miss a payment on the debt settlement, the creditors can take action, undoing all of work that was done.

For debtors who are astute, a debt management program may be the best option.  This program is a self-made repayment plan that allows the debtors to repay their loans without having the damaging effects of hurting your credit rating.  A debt management program does not actually give credit card debt assistance, it helps debtors take a step back and strategize a way to pay off their debts.  Taking a step back and looking at your whole financial picture is a good way of getting out of credit card debt.  The downside to this program is people who have lost a job or source of income, usually cannot afford even to make a small monthly payment for debt.

No matter what option you choose, the fact that you are looking for a solution is right step to getting out of credit card debt.  The only bad thing you can do when you have lots of debt is do nothing. By taking action you can focus on trying to find a solution to your financial situation.  Before choosing an option, you should look online to find different offers available for getting out of credit card debt.  Always do your research so you know all of the options that do exist.