A lot of people ask: “How can I eliminate credit card debt without bankruptcy?”
I hate the word bankruptcy. Seems like an easy out for some people. I do not think that you will want to pay the price of a bankruptcy. This black mark will stay with you for a minimum of 7 – 10 years depending on several factors. And even after it comes off of your credit record, don’t you think that a lender might just be asking you why you haven’t had any action on your report for all of those years?
Credit card debt is an easy trap to fall into. But with some planning and hard work, you can get out.
If you are out of control, and can not stop charging things, CUT THOSE CARDS UP! Take the temptation away.
If you are looking for the answer, you have already taken the first step. You have to know that there is a problem and you must want to solve it. And just like anything else in life you have to have a solid plan to make it happen.
Obviously there is no standard “one size fits all” plan. Situations are different and so are the actions needed to eliminate your debt. So you are going to have to be the one to decide which plan is for you.
So now you need to write down all of your debts, expenses and income. The very first thing to do is make some phone calls if you have serious problems such as late or missed payments. The very worst thing that you can do is ignore them! You will be surprised at how understanding some lenders will be. This phone call could give you a space cushion or even save you from getting a black mark on your credit report. Most lenders will be willing to take smaller payments until you get caught up.
Now let’s take a look at the money that you are spending. Do you really need a cell phone and a land line? How about those 300 channels on your TV? Are you getting a coffee at Starbucks everyday? Little things add up fast. You may be surprised at how much you can save if you try.
OK, what about the debt? You should pay off the ones with the highest interest first. Then you will have more money to put on the principle of the others.
Depending on how bad it is, you could look at a couple of other options. Maybe borrow against something such as your home to consolidate the credit card debts and pay a lower interest rate. A word of caution on this. Make sure that you do not get into trouble again. This is normally a one time fix.
So there are some ways to eliminate credit card debt without bankruptcy. I really would not go that bankruptcy route without a lot of professional financial advice and a lot of thinking. Start with a solid plan and a lot of determination!
To compare credit cards from various banks got to Credit Land. Make sure that the card you are carrying is right for you!