1) KEEP MAKING MINIMUM PAYMENTS
The credit card industry loves this! They know that if a consumer just makes the minimum payment each month, it may take 10-15 years before they ever pay off the account.
When you add up all of the interest and fees they charge, you could end up paying 3-4 times the original amount you charged!
2) SECOND MORTGAGE OR EQUTIY LOAN
If you have equity in your home, you may be able to qualify for a 2nd mortgage or equity line of credit.
BUT BEWARE! Right now, these credit cards are UNSECURED. If you default, you have not pledged anything as collateral.
If you take out a loan against your home's equity and default, your home is at risk!
On the other hand, if you are disciplined enough to pay off the 2nd or equity line quickly, you could end up saving thousands of dollars in interest and fees.
3) DEBT MANAGEMENT PROGRAM
If you are able to make the minimum payments and maybe a little more, then you should consider a DEBT MANAGEMENT PROGRAM.
If you qualify:
- You will have ONE MONTHLY PAYMENT
- Th payment is disbursed to each of your creditors for you
- Most creditors will LOWER your INTEREST RATE and ELIMINATE late or over-the-limit fees
- Creditors will not be calling
- You should be DEBT FREE in about 48 months or so
4) DEBT SETTLEMENT PROGRAM
It is not unusual for people in today's economy to find themselves in a financial situation they have never been in before.
This could be due to several factors including:
- Reduced hours
- Medical bills
If this is the case and you CANNOT AFFORD THE MINIMUM PAYMENTS, much less the payments required by a Debt Management Program, the a DEBT SETTLEMENT PROGRAM may be you best option to pay off credit card debt.
In this program, an amount of money you can afford is set aside so that at some time in the future, an offer to settle your account can be made.
You may be able to settle your accounts at 50% of the balance.
But, DEBT SETTLEMENT IS NOT EASY and most people cannot do it by themselves.
You may want to consider seeking professional help.
If you cannot make the payments required by either a Debt Management Program or a Debt Settlement Program, then your only option may be bankruptcy.
Get an appointment with a couple of BANKRUPTCY ATTORNEYS in your area.
There should not be any charge for your initial consultation.
You most likely will qualify for a Chapter 7 or 13, and the attorney will explain the differences.
If you would like a FREE CONSULTATION with NO OBLIGATION, then click below and we will send you some information that may be very helpful.
photo by: alancleaver_2000