Consumer Debt Solutions

Having credit card problems? Unable to keep up with your credit card payments? Or your credit card debt?

You're not alone. Americans are finding themselves in over their heads with credit card debt in record numbers. Not only that, but many of those in deep trouble have already tapped out the equity in their homes to pay off previous card debt only to run the balances up again.

So what are the options now? Is bankruptcy your only option? Not necessarily so - it depends on your circumstances - how much debt you have, and what resources you have available.

Let's look at a couple of possible answers:

Debt roll up. Figure out how much extra you can pay each month. Add that amount on to the minimum payment on the card with the lowest balance until it's paid off. Then use the extra amount plus the minimum you were paying on that card and add it to the minimum of the next lowest card, pay that one off and move on to the next in the same manner. This strategy works very well if you can afford to pay the same amount each month. People that are able to do this usually can pay off all their debt including their mortgage in about 10 years average.

Debt counseling. Hire a third party to negotiate lower interest rates from your creditors on your behalf. Then you pay the third party a set amount each month, and they pay your creditors. Again a good strategy if you can keep up the payments.

Debt settlement. You or a third party negotiate with your creditors to pay off your debt in a lump sum - at roughly half or lower of the balance. Very good strategy if you can do it yourself. Otherwise it'll cost you a fortune in fees to the settlement company.

Bankruptcy. The last resort. If there is absolutely nothing else you can do.

Debt roll up is the best choice if you can do it. Trouble is, once you find yourself in this kind of financial straights, it usually is too late, and you don't have any leftover money to spare for an extra payment each month.

Debt counseling is ok if you are temporarily in trouble, laid-off or with medical problems. Debt counselors are funded by the credit card companies.

Debt settlement is a great option. But be ready to have your credit score take a hit, and be ready to be harassed by collection calls. There are ways you can minimize the nasties though, and you potentially can save a bundle.

Click here to receive a free report on debt settlement.

Consumer Debt Solutions |