Debt elimination can be obtained in different ways. There is no one solution that can be applied universally by all. Choosing the best option for you in your particular circumstances and seeking professional advice. The final goal is to achieve debt elimination and become debtfree. Look at the possible solutions below. There may be one that helps you in your present circumstances..
1. Credit card debt consolidation
If you have accumulated a large number of debts and the monthly payment process in unmanageable.. Enrolling in a debt consolidation program were your debt negotiator can negotiate with your creditors and attempt to lower your interest rates on the credit card debts. This will lower your monthly payments and you will have a single monthly payment. In this situation you may have to continue making a payment to the debt consolidation company who will escrow the money for you and pay of your creditors. This is one method to get rid of credit card debt and a sound debt elimination method.
2. Credit counseling
A credit counseling agency can give you help with debt elimination. This counselor will try to help you and give you sound advice Subsequent to reviewing your circumstances he will as you to implement a budget to manage your finances better and create a debt elimination plan. A credit counselor may also suggest you to enroll in a debt management plan or a DMP. In a DMP your debt consultant will negotiate with your creditor to reduce your interest rate and set a fixed monthly payment.
3. Credit card debt settlement
If you are in debt for an amount, which you cannot pay, then you can use debt settlement for debt elimination. This method also referred to as debt negotiation involves negotiating with your creditors to forgive part of your current debt. With this process, you are left with a portion of the amount that you actually owed. The amount forgiven can range from 20 to 80 percent, but 40 to 60 percent is customary. Remember that debt settlement can hurt your credit score. This becomes a secondary issue since you being late or missing payments will also have a negative affect. Additionally, the amount forgiven may be considered income and taxable.