Eliminate Credit Card Debt
"Eliminate credit card debt” commercials
are all over television and the radio. Companies that
claim they can help people get out of debt have several
different approaches to the problem:
- Some companies encourage refinancing. Done correctly,
this can be a viable means of reducing interest
- Other companies propose people look into filing
for bankruptcy, which can have major repercussions
in a person's financial life.
- Debt consolidation can help people vastly reduce
not only the number of bills which flood their mail
each month, but also some of the overwhelming interest
they must pay.
- However, there are a few groups that, instead
of offering a one-step solution, will actually sit
down with a client and develop an overall strategy
for overcoming his credit card problems.
The third tactic, utilizing credit counseling services,
involves professionals who gather information from their
clients regarding debts, monthly payment obligations,
living expenses, income and assets. They will also interview
each consumer they work with to better establish a reasonable
spending plan. This plan will include creating a realistic
budget that allows a person to save at least a little
money for emergencies. Credit counselors can also negotiate
with unsecured creditors to get special considerations,
such as lower monthly payments, for their clients.
Refinancing to Eliminate Credit Card Debt
Refinancing will most likely come up when talking to
a counselor. However, it is seen as one of many tools
that can be used, not the only tool. Refinancing
can be an effective way for people to shift all of their
monthly credit card payments into one affordable payment.
This can lower interest and help to get rid of the late
fees that often account for much of a person’s bill.
While most commercials would have people believe that
getting rid of credit card debt is a fast, simple process,
that is usually not the case. It requires disciplined
spending and a cohesive strategy. It is important for
consumers to look into all of the services a company
offers when deciding who can best help them with their
Learn more ways
get out of debt