I saw a study recently that the total credit card debt in the US is about 962 billion dollars. And the average credit card debt per cardholder is around $14,700. Since that’s just an average, it’s pretty clear that many cardholders owe much more than $15,000, which is pretty astounding.
Credit cards can be a very good thing
Credit cards used wisely can be a very good thing. They are a safer way to do online shopping and very convenient for paying at retail. Credit cards can also be good for use in case of an emergency, to buy a major item or to simply pay for everyday stuff. You can repay your credit card debt immediately before you have to pay any interest or you can pay your balance slowly over time – though may have to pay very high interest rates.
When credit card debt goes wild
Unfortunately, it’s easy to let credit card debt get away from you. You can feel as if you owe just several hundred dollars one day and then more than $15,000 the next. If your credit card debt has gotten out of control, there are two not-so-good solutions and one really good solution to credit card debt.
The first not-so-good solution is a debt consolidation loan. While one of these loans does have some advantages, it has one big negative. It’s that you’re really only moving your debt from one set of creditors to another. You’ll have lower monthly payments but that’s because you’ll be paying on that loan for as long as five to seven years. Ouch.
The specter of bankruptcy
The second not-so-good credit card debt solution is to file for bankruptcy. This is a surefire way to get rid of your credit card debt. However, it won’t eliminate all your debts. For example, a bankruptcy won’t discharge student loan debt, child support payments or any taxes you owe the federal government. In addition, a bankruptcy will stay in your credit report for seven to 10 years, during which time you may find it very difficult to get a new credit card, buy an automobile, get any sort of personal loan or even rent a house or apartment.
The one really good credit card debt solution
A good credit card debt solution that has helped many families is called debt settlement or debt relief. It is not the same as debt consolidation because it can actually reduce the amount of money you owe, and get you more favorable terms for paying back what you owe.
How debt settlement works
You could actually negotiate to settle your debts with your credit card providers yourself. However, it takes a lot of intestinal fortitude because you have to quit paying on your cards for several months before you begin any negotiations. Plus, the credit card companies are very experienced at negotiating with cardholders and it is not in their best interests to give you a good settlement.
A better solution
A better solution is to hire a company that is experienced in debt settlement or debt relief and let it do the negotiating for you. For example, we have very experienced debt counselors who have excellent relationships with the credit card companies and know how to negotiate the very best settlements. We can usually get your credit card debts reduced by at least 50% and have the credit card companies agree to a payment plan that will leave you smiling in relief.
You can get more information on our debt relief or debt settlement services on our home page at www.debtconsolidationusa.com. Be sure to fill out the free debt analysis form you will find there so you can learn more about the best of the three credit card debt solutions. We don’t charge you anything unless we can negotiate a settlement you approve of. So, you really have nothing to lose by putting us to work.