A Few Credit Card Debt Relief Options For Consumers
It is no secret, many consumers use credit cards and as a result of overuse, many consumers have found themselves in the position of overwhelming debt. But, when it comes time to start dealing with their debts, consumers simply don't know where to start. What are the options? As the owner of a card website, I am often emailed questions and one of the most common is, what are options consumers have for debt relief? There are indeed a few options that consumers have when it comes to getting out of debt. Things like balance transfers, working with our lender directly or even using a third party debt settlement or consolidation company might be what consumers need. Here are the different options and who they are right for:
#1: Balance transfer credit cards: One option that consumers have when they want to get out of debt is to use balance transfer cards. These specialty cards come with low promotional interest rates often times as low as 0% for anywhere from 6 to 18 months. This period of time with no interest rate has proven to be just what thousands of consumers needed to get back on their feet and deal with their debts at the same time. However, not all consumers will qualify for balance transfer cards. Generally, only consumers with good to excellent credit scores will qualify for balance transfer cards. So, if you have good credit scores, this may be your best option. The consumers that don't have good credit scores however will need to choose either option 2 or 3.
#2: Work directly with your lender: Another option that consumers have when it comes to getting rid of debt is to work directly with their credit card lenders. The truth is, most lenders have started to offer financial hardship programs to consumers. As a result of the financial recession that our entire country just faced, many lenders have provided these credit card hardship programs to consumers as a way to help them get back to normal. Most financial hardship programs are designed for those consumers who can't quite afford to pay their credit card bills each month but are not yet thinking about bankruptcy. The consumers that are thinking about bankruptcy should use option 3 as a last resort, all others should try to work with their lenders first.
#3: Credit card settlement or consolidation: Finally, an option that consumers have to get out of debt is debt consolidation or settlement programs. However, I only advise these to those consumers who are strongly considering bankruptcy. These programs provide consumers with a great last resort when it comes to dealing with their debts. These special programs will help to consolidate all card payments into 1, reduce the interest rates that consumers will have to pay and in some cases reduce entire balances. However, consumers should remember, these programs detrimentally effect credit scores in many cases so, consumers should think twice before entering into a program like this!
I hope that I've answered any questions you may have had about this topic. For more information on this topic and other personal finance topics, please feel free to click one of the links below!
#1: Balance transfer credit cards: One option that consumers have when they want to get out of debt is to use balance transfer cards. These specialty cards come with low promotional interest rates often times as low as 0% for anywhere from 6 to 18 months. This period of time with no interest rate has proven to be just what thousands of consumers needed to get back on their feet and deal with their debts at the same time. However, not all consumers will qualify for balance transfer cards. Generally, only consumers with good to excellent credit scores will qualify for balance transfer cards. So, if you have good credit scores, this may be your best option. The consumers that don't have good credit scores however will need to choose either option 2 or 3.
#2: Work directly with your lender: Another option that consumers have when it comes to getting rid of debt is to work directly with their credit card lenders. The truth is, most lenders have started to offer financial hardship programs to consumers. As a result of the financial recession that our entire country just faced, many lenders have provided these credit card hardship programs to consumers as a way to help them get back to normal. Most financial hardship programs are designed for those consumers who can't quite afford to pay their credit card bills each month but are not yet thinking about bankruptcy. The consumers that are thinking about bankruptcy should use option 3 as a last resort, all others should try to work with their lenders first.
#3: Credit card settlement or consolidation: Finally, an option that consumers have to get out of debt is debt consolidation or settlement programs. However, I only advise these to those consumers who are strongly considering bankruptcy. These programs provide consumers with a great last resort when it comes to dealing with their debts. These special programs will help to consolidate all card payments into 1, reduce the interest rates that consumers will have to pay and in some cases reduce entire balances. However, consumers should remember, these programs detrimentally effect credit scores in many cases so, consumers should think twice before entering into a program like this!
I hope that I've answered any questions you may have had about this topic. For more information on this topic and other personal finance topics, please feel free to click one of the links below!
Source...