How to Get Credit Card Debt Relief

If you are like most people, you tend to use credit cards for emergencies, sudden expenses, or for doing something fun like taking a vacation. Unfortunately, the amount we put on our credit cards can really add up, especially with there is really high interest charges. When your credit card debt becomes overwhelmingly high, it often does not seem like you will ever pay it off. In such cases, there are steps you can take to alleviate the debt and even pay it off. If you are in serious credit card debt and are interested in learning how to get credit card debt relief, below are a few solutions that can help.

Negotiate with Credit Card Companies: Depending on your particular financial dilemma, you may be able to negotiate with the credit card company yourself for a better rate. However, you should make sure you do not have a lot of other debt such as personal loans and multiple credit card bills. If you have just one or two credit cards, this can be a good option. The most beneficial time to negotiate for a lower interest rate on your credit cards is when you’re still current with your payments and have not fallen behind.

A Credit/Debt Counseling Agency Can Negotiate Debt Relief for You: If your outstanding credit card bills are so high you cannot keep up with the minimum payments and the interest is piling on, it is time for debt relief help. The sooner that you meet with a debt/credit counselor from a debt relief agency, the sooner you can get things under control and you will also have more options available to you. It is important to see a debt relief agency that is reputable and established. These debt management counselors are professionals at working with creditors to negotiate a lower payment plan.

Debt Consolidation Program: If you have multiple outstanding bills such as personal loans and multiple credit card bills that are really high and unmanageable, you can meet with a debt management counselor to talk about participating in a debt consolidation program. These programs are offered by a debt management agency or credit counseling agency. The program involves consolidating all of your unsecured debt into one loan with one interest charge. The debt counsellor will negotiate with your creditors for a lower payment amount. You will send your loan repayments each month to the debt management agency and your debt counsellor will send the payments to each creditor. As part of this program, the debt counsellor works with you to create a sound budget and you will learn how to better manage your finances.

Orderly Payment of Debt Program: If you are a resident of Saskatchewan, Nova Scotia, or Alberta, you may be eligible for a consolidation order that is called an Orderly Payment of Debt program (OPD). With this program, you will repay the whole amount on the unsecured debts that you owe which is normally over a three year period. The interest rate is fixed at 5%. You will be able to hold onto your assets. The creditors must be in agreement and the courts must approve the OPD program.

Debt Settlement Program: This debt relief program involves repaying just portion of what you owe.You propose to your unsecured creditors that you pay a lump sum of money in return for the creditor eliminating or writing off the remaining part of what you owe on the debt. If you’re not able repay the full amount, but you are able to get a lump amount of money that would repay a portion of what you owe, such as through selling a second car, this may be a suitable debt relief option.

Before you make any decision regarding debt relief, it is wise to speak with a Debt Settlement Specialist from a debt relief agency. There are various fee structures involved with the various plans so you should learn all about them so you make a more informed choice. As well, make sure the debt settlement agency is licensed and reputable and does not have any issues with the Better Business Bureau. The last few years have been a difficult time financially for a lot of people. Fortunately, there is debt relief options out there that can help you get out of debt and start living a debt-free and fiscally stable life.

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