subject: How Credit Card Debt Management Can Get You Out Of Debt [print this page] Do you have debt? If you do, you have the option to consolidate your credit cards. And if your debt is more than $5,000, you should seriously consider taking some type of action to eliminate your debt. Having debt can steal your dreams and limit your future, but there are things you can do to get out of debt and move forward. You have a few different choices as long as your debt situation has not gotten critical.
There are a lot of debt settlement companies advertising their services and they do have their place, but it is a better idea to checkout credit counseling first. While debt settlement says they can have you debt free in 3 years, but at what price? Debt settlement will ruin your credit and you will be expected to pay income tax on the amount of the debt that is forgiven.
If you are current on your accounts and opt for debt negotiation, unless you have the money to settle immediately, you will have to stop paying your lenders in order to save the money for the settlement. You are taking a chance in the current economy that you may be sued by the lender. This is an option that should only be used as a last resort before bankruptcy. Using a service can be pricey and should try to negotiating on your own after research how it is done.
Credit counseling will take a little bit longer than debt settlement. But once you have enrolled in the program, you do not have to worry about being sued or getting collection calls. This program is more accepted with lenders than debt settlement. The total balance is being repaid and they are getting regular payments. For this reason, your credit score will not be severely affected. Debt counseling companies also provide budgeting help and assistance for staying out of debt and moving forward financially with your life.
Consolidating your credit cards will make it easier to make your payment. You will not have worry about making several different payments anymore. Your accounts will all be consolidated and you will only have to make one payment each month. Your interests are reduced and your payments are snowballed, making it possible to have almost any amount of debt paid off in five years as long as you can make a 2% payment each month. Get a free quote for debt relief today.
by: Marjorie Salada
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