Consumer Debt Solutions

Where do you turn when you can no longer pay the minimums on your credit cards? Where can you find help for getting out of debt? These are just a couple questions being asked by millions of Americans who are finding themselves buried under a mountain of debt. Consumer debt help is one of the fastest growing industries at the moment. Consumer credit card debt is reaching staggering proportions as Americans are now paying the price for the "buy it now - pay later" mentality.

A simple search on consumer credit and debt counseling turns up millions of sites all very willing to provide you with debt help. But which plan is best for you? Here is a list of the acceptable choices:

Debt roll up, you pay off a credit card then use that monthly payment amount to pay off other cards, and so on. This is a great system if you can make your monthly minimums plus extra funds called an accelerator payment - usually about 10% monthly income. Using this method, a persons debt - including their mortgage - can usually be paid off in ten years.

Debt consolidation, if you own a house that has equity, you take out a second mortgage to pay off your credit card debt. The loan is at a lower rate, and the interest can be written off on your income taxes. BUT, you default on the loan, you will lose your house.

Debt counseling, A third party - a counselor - collects a set monthly payment from you, then pays your creditors out of this payment. The counselor is able to negotiate a reduced interest rate, and can get the creditors to stop harassing you. This method has a very high failure rate because people find themselves unable to keep up with the sometimes rather steep monthly payments.

Debt settlement, You or a debt settlement service negotiates with your creditors to payback a portion of your debt, typically 50%. You must make the payment in one or two lump sums, usually within a month of settlement. If you can swing it, this is a very powerful method as have the most control over the situation.

Bankruptcy, depending on the type - chapter 13 or 7, you either relinquish everything or payback the debt over a period of time. Either way you have a mark on your credit that makes it difficult if not impossible to get a good rate on a loan for ten years. This is a last resort.

These are your options (unless you win the lottery) The one you choose depends on your situation.

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Consumer Debt Solutions |