Credit card debt management is something that many Americans struggle with. After nearly two decades of unlimited credit and reckless spending many consumers are now paying the price when it comes to their credit card debt. Here we take a look at 3 of the best options for dealing with massive credit card bills.
Debt Consolidation allows you to trade in your high interest unsecured credit debt in for a lower interest consolidation loan. You will save a lot of money by lowering the interest rates over the payback period but you must be confident you can meet the payment each month. If you can’t you could end up losing your house or whatever asset you backed up the consolidation loan with.
Credit counseling is intended for consumers and small businesses with several high interest credit cards. These programs negotiate and lower the interest rates and allow you to pay the debt back in one monthly payment. It is similar to a consolidation loan but you won’t have to put up a security. The payment to this program will be around the sum of your currently minimum monthly payments. Make sure that you can afford this every month because these programs are notoriously strict for kicking clients out after just a few missed payments.
Debt settlement is intended for individuals and small businesses that are experiencing a financial hardship and have at least $10,000 in unsecured debt. Those that qualify can have 40-60% of their unsecured credit debt completely removed. Most consumers who choose debt settlement are on the verge of bankruptcy and want to avoid filing. It can be a very effective credit card debt management tool.