Paying credit cards on time is a good thing to do, especially if you can pay more than your monthly minimums. The problem that many people are having is that they are barely able to get by with making just the bare minimum payments.
Many times, people have had to cut down on their grocery bill in order to make payments. They can only hang on like this for so long before they have to stop paying their credit cards completely.
Does this sound all too familiar to you? Have you had to stop paying your credit cards? If so, then you are probably very concerned about what happens when you stop paying credit cards.
Can they come after your stuff? Are they going to take your home? Will this cause you to lose your job? Do not worry. The credit card debt that you have is an unsecured debt. However, your credit is being affected in a big way and these companies are adding on fees and penalties by the day.
Is Bankruptcy A Good Option?
Many people out there are getting advice that includes filing bankruptcy. While it may be tempting, filing bankruptcy is the last thing that you want to do.
When you file bankruptcy, no matter what chapter it is, you will have damaged credit for up to 10 years. It will be near impossible to rebuild your credit during that time, and you are likely to be turned down for many job opportunities.
Rebuilding Your Credit
While you may not be able to afford to make all of your credit card payments, you do want to have good credit. This way, should an emergency ever occur, you will be properly prepared.
Aside from paying your credit cards off in full, the next best thing is to reduce the amount you owe and pay that off. This is called a debt settlement. When you complete a settlement agreement, your credit will be damaged for a short amount of time. However, you will be able to rebuild your credit in no time at all.
How Debt Settlement Works
Now that you know what happens when you stop paying credit cards, it is time to do something about this. With the help of the right professionals, you will be able to settle your debt and be free from the problems of it.
With debt settlement, you and the credit card companies come to an agreement on what you can pay off in order to call it even. Let’s say you owe $23,000 in credit card debt. You might be able to pay only a portion of that and your debt will be canceled. It will be over. You will not owe another penny.
By being connected to the right company, you will be able to settle your debts for up to 50 percent of what you owe at this very moment. This is an incredible savings.
Is This A Loan?
No, debt settlement is not a loan. Our company matches you with the right help to reduce the amount of debt that you owe. This is done by reducing the principal balance of what you owe, instead of focusing on interest rates and late charges waivers like other companies might do.
Once you come to an agreement, you have to make a lump sum payment to pay off your debt. This is a one-time payment. You will not have to be stuck in a repayment plan agreement.
Loans are available for those who want to consolidate their debt, but loans cost a lot of money. Eventually, you will find yourself in the same situation. You might possibly be worse off as some loan companies will only give secure loans. If you do not pay them back, they could take your car or house. You do not want to risk all that you have.
What Can Be Settled?
Even though your first interest may be that of getting rid of your credit card debt, now is the perfect time to settle other debts as well. This way, you can free up more money that can be put towards more important things.
Some of the debts that are able to be settled include:
• Medical bills
• Lines of credit
• Credit cards
• Business debts
• Personal loans
Debts that cannot be settled include:
• Auto loans
• Mortgage loans
• Government loans
• Student loans
• Utility bills
• IRS debt
• Property taxes
There Is Help Available For Your Credit Cards
You should now have a much better idea as to what you need to do. It is important that you are taking action right away. The longer you wait, the more money you are costing yourself. Today can be the first day of your debt free life.