Credit card debt help options: Choose with caution

There are different ways to obtain credit card debt help or credit card debt reliefIf you’ve become exhausted to make payments that are difficult to manage and you want to get out of debt forever, then you should start looking for credit card debt help options. There are different options to choose from but you should go for the one that is right for you. 
Credit card debt help options    
You can get out of credit card debt through a credit card debt management plan, debt settlement program or filing Chapter 7 bankruptcy. The discretionary income of the borrower, his credit history and amount of debt would ultimately decide which loan assistance program is most feasible for you. This implies that obtaining financial counselings from a credit counsellor is essential for those individuals who want to become debt free.  

1) Debt management plan
You can obtain relief from your credit card bills by signing up for a debt management program. Your interest rates would be negotiated and you can pay off your credit cards through a single monthly payment that you can afford. Negotiations are usually carried out by a third party agency, mostly a credit counselings firm. All your income, expenses and loan obligations would be thoroughly evaluated for setting up a reasonable repayment plan. You’re liberated from the responsibility of making multiple payments each month. After deducting a certain amount as fee (usually 15%), the payments would be distributed among your creditors. Majority of creditors would be ready to waive late and over limit fees. 
2) Credit card debt settlement program 
A professional settlement company would perform negotiations with your creditors to lower your balances by up to 50%. A monthly repayment plan is then set up for a 12, 24 or 36 month term. You also have the option of paying the balances as a lump sum payment. If you owe a huge amount on your cards, then settlement is a better choice for you.   
3) Filing for Chapter 7 bankruptcy 
If you file for bankruptcy, then all your debts can be discharged within just 4 to 6 months. You don’t need to make a repayment. If your income is too low to qualify for a debt management or settlement program, then declaring bankruptcy might be the only option left for you. However, bankruptcy does have some negative outcomes. It stays on your credit report for 10 years and creates obstacles in becoming eligible for credit in the future. The bankruptcy regulations have been amended in 2005 and these rules have become stricter so that they’re not misused.  
It is advisable that before choosing any option, you should talk to a credit counselor. All the options have their pros and cons. He can tell you which option would work most effectively. You shouldn’t waste much time since the more you’d delay, the worse your problems would get.

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