Just imagine what it would feel like to get rid of all that credit card debt. How would you feel when you first woke up and realized all that credit card debt was gone? Would you feel as if a great weight had been lifted from your shoulders? Or maybe you would just be able to breathe easy again.
You can make this come true
You can get out of credit card debt hell. But I have to be honest. You can’t do it overnight unless you file for bankruptcy. A chapter 7 bankruptcy is by far the fastest way to get out of credit card debt. It is also a very fast way to stop all those harassing phone calls from credit card companies and debt collectors. This is because once you file for bankruptcy, they can no longer contact you. It’s one of the benefits of the chapter 7 bankruptcy. Of course, the other big advantage is that you can get rid of your credit card debt in a year or
The downside of a chapter 7 bankruptcy
A chapter 7 bankruptcy will “discharge” most of your unsecured debts, including credit card debts. Discharge is a legal term that means your debts will be eliminated. However, it’s important to understand that a chapter 7 bankruptcy will not discharge all of your debts. It cannot get rid of student loan debt, past due alimony or child support payments or any back taxes you owe to your state or the IRS. Plus, you may lose some of your most valuable possessions as they will be seized by the court and sold to pay off your creditors.
Other ways to get rid of credit card debt
There are some other ways to get rid of credit card debt – both usual and unusual. Two “usual” ways would be through a debt management plan or a debt consolidation loan. You would probably need to do a debt management plan with the help of either a consumer credit counseling agency or a debt management company. Whichever you choose, it will probably take you roughly 5 years to get rid of those debts.
Do a zero balance transfer
A less usual way to cope with credit card debt is to transfer all of your balances to a credit card that has a lower interest rate and offers what is called a zero balance transfer. It is called a zero balance transfer because you will not be required to pay any interest for anywhere from 6 to 18 months, depending on the card you choose. This “timeout” gives you the opportunity to pay down or pay off your credit card debt because all of your payments will go against your principal and not against any interest.
Pay as much as you can
You will get out of debt much faster the more you pay every month. Instead of making just the minimum monthly payments, try to at least double the amount you pay. That minimum payment option on your statement is designed to get you into what’s called debt maintenance so the credit card companies can earn continue to interest. It’s just a bad option.
Cash in your investments
No matter how much you’re earning on your investments, it cannot compete with the interest you’re paying on your credit cards. If you have a credit card with an interest rate of 17.99%, you can earn a guaranteed return of 17.99% by paying off that debt.
If you have any savings, you may want to cash them in. Or maybe you could borrow against a life insurance policy.
Renegotiate your terms
Here you would need to contact all your creditors and try to negotiate a new, lower repayment schedule. You might be surprised at the reaction you get, especially if this is the first time you got into real financial trouble. You should make it clear that this is a call of last resort and that your only other alternative would be to file for bankruptcy. Your creditors may be willing to work with you because this is better for them than getting nothing.
Let our debt consolidation partners help
Our debt consolidation providers have helped thousands of families get out of credit card debt in a reasonable amount of time and help them save thousands of dollars. We even offer a 100% satisfaction guarantee. If at any time you are unsatisfied with the debt consolidation plans you are offered, you can just walk away without paying any fees or penalties. Call our toll-free number today or fill in the form at the top of this page for a free debt analysis and quote.