Credit Card Debt Relief: Ways to Get Out of Debts

Credit card debt relief is the best way to forget about painful payments that empty the monthly budget of your family and just grow with time. There are several ways that can help one to get out of credit debts and loans. No one can stop you from getting debt-free within the very short time. All the sources for credit debt solutions make it possible to start over with the clean credit history in the next few years. The time for the particular solution to be realized is only linked to the amount of actual problematic debt. So, here are the options.

Credit Card Debt Relief – You Are Not Alone

Different informational sources show that debt repayments take up to 45% of family income for many American households. It is an unimaginable number, since it leaves vey little income left to have a normal life. In order to avoid a personal bankruptcy and overcome the personal financial crisis the people with this problem need to consider different options for debt relief of their credit cards. It is especially essential for the people with poor credit history. Even though, the road to being free of debt through credit card relief is not that easy, still, this goal is not something impossible.

The three main options for credit card debt solutions leading to a happy life with no credit debt along are the following:

1.     Credit Card Debt Settlement Program

2.     Debt Management Plan

3.     Chapter 7 Bankruptcy Filing

Credit Card Debt Settlement Program - Credit Solutions with Professional Help

This source of debt solutions is one of the best for the cases when big amounts of credit have been taken out. The way through which this method is implemented is described further. The special companies provide services of being professional negotiators or intermediaries. They use their experience and knowledge to negotiate the debts their clients owe to creditors. These negotiations may lead to a significant decrease in the amount of debt owed, i.e. even up to 50 – 60 %. When the new figure of the credit amount is settled, the debtor is notified of the amount of monthly repayments to be paid to a creditor. Usually, the period of repayments is set for one, two or three years.

The advantage of this way of debt reduction is that everything is done by professionals that are interested in lowering your debt as much as possible. The disadvantage is that you are to pay them the fee for the debt relief solutions services.

Debt Management Plan – Arrange to Pay What You Can Afford

The way to get out of debt through the debt management plan is often selected when the amount owed to lenders is relatively small. It is primary offered by credit solutions companies to people that have unsecured debts (loan, overdraft, store card, credit card, etc.) they cannot afford to pay and cannot take care of their monthly repayments. The services of negotiator are used to achieve an informal agreement between the debtor and the lenders. According to this agreement, the monthly repayments are set at the rate the debtor can afford to pay. The deal can also include a freezing of interest rated on the debts and any other charges. Once again, the management fee has to be paid to the negotiators. Of course, for many the fee of 15 % is definitely worth the ability to regain the control of their finances again.

Chapter 7 Bankruptcy Filing – Last Option to Get Out of Debt

In the case when previous options do not work for a person with big credit debt, the last chance to be financially free again is to declare a bankruptcy. This way you do not need to make any repayments and thee time to the debt-free state lies within four to six months. This way is considered when a person has no income to offer to the creditors. The special form called "The Means Test" needs to be filed to check whether or not you qualify for a Chapter 7 Bankruptcy Filing. If you do qualify for this, then the bankruptcy attorney will lead you through the process up until you get completely discharged. The credit can be re-built after this procedure.

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