In places like California, which was hit particularly hard by the economic crises of the last few years, it is possible to find people with as much as $50,000 in credit card debt. There are many ways that people can get in over their heads this way. Prices did not go down after the economy took a downturn. This led many people to look for credit as a way to survive the recession. The problem is that interest rates with many credit cards have soared and made it nearly impossible to escape from these debts.
Once someone recognizes that they cannot reasonably pay off so much debt when the interest rates are so high, it should make it easier for them to take a drastic step to solve the problem. Unfortunately, many people are taking half measures that will only draw out their difficulties instead of meeting their debt problems head on and solving them quickly. Others are declaring bankruptcy and suffering the long-term consequences when such a method is not really appropriate for their cases.
Why Loans Will Not Work
A lot of people try to solve credit card problems of this size with debt consolidation loans. The intent of these loans is to pay off all of a person’s credit card debts and convert multiple monthly payments into one larger payment. Typically, the interest rate on this loan is better than the average credit card interest rate.
However, if you have a credit card debt as large as $50,000, this sort of arrangement is only going to prolong your difficulties. An unsecured debt of this size serviced at rates anything near the average credit card rate will never disappear. With so many people walking away from mortgages that are much larger with rates that are much lower, it does not make sense to try to pay off a debt like this.
Why Not Declare Bankruptcy?
Bankruptcy is often a solution for people with debts too large to resolve. If your debt is primarily in credit cards, however, bankruptcy may have too many long-term consequences that you have not considered. After bankruptcy, it can take as long as 10 years for your credit score to recover.
There is another solution to debt problems of this size that can be resolved in much less time than a bankruptcy and requires you to pay far less than a debt consolidation loan. At DebtConsolidationUSA.com, we do not believe in taking steps that only cause your problems to continue for interminable periods. We prefer to help you resolve your debt issues with debt settlement consolidation.
Settling Your Credit Card Debts
If you have credit card debt as large as $50,000, or even if you owe much less, you may find that debt settlement is the right solution for you. This approach will get you out from under your debt in as little as a few years and save your credit score from years of negative consequences. Instead of arguing in court and paying a lawyer to convince a judge to erase your debts, you can actually pay off your debts honestly and get credit card companies to close your accounts. This heals the damage to your credit rating quickly and lets you wipe the slate clean.
Once you have determined that settlement and negotiation are the best route for you, you will begin saving money for your lump sum payoffs of your creditors.
As the fund increases in size, a top rated debt arbitration firm will negotiate with your credit card companies. In exchange for a lump sum from your settlement fund, most credit card companies will eventually agree to erase the remaining debt. With your account officially closed, your credit rating will improve. Once your last card is paid off, you will have a truly clean slate and a decent credit rating.
Other Types of Debt That You Can Settle
While you are settling your credit card debt, you can also include some other types of debt in this agreement. If you have medical bills or payday loan debts, you can roll them into this service and settle them the same way. However, you cannot include secured debt in this type of settlement.
Contact us now if you have as much as $50,000 in credit card debt. They can have you debt free in a few years. Some cases can be resolved in as little as two years.