Help With Credit Card Debt
Print View - Published: Wed, 14 Sep 2011 at 11:17 AM
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Being In debt may seem like you're in an ever deepening hole that's impossible to climb out of, but there is always hope, and your first thought should never be "bankruptcy is my only choice"..
Balance Transfers
Often times you can find some major relief in simply transferring the balance of one credit card over to another that has a lower interest rate attached.
By moving the balance to a credit line with a lower interest rate, more of your monthly payments will be applied to the principal and that can lead to a lot of money in savings for you over time.
In addition, with a lower interest rate there is a chance your monthly payments will be lower as well. Don't take advantage of this unless you have to though. The fact is, even if your minimum payment goes down, if you can continue paying the same amount each month that you were with the higher interest rate line, this will reduce your overall debt at a much faster rate.
Home Equity Loans
Owning a home gives you power and leverage, even in tough financial times. With low interest rates and shorter terms, using a Home Equity Loan to consolidate and eliminate high interest credit card debts is a smart maneuver, and even if your credit rating has suffered recently because of the credit line debts, your property secures the loan so you shouldn't have too much trouble getting approved.
Mortgage Refinancing
This option is similar to taking out a Home Equity Loan, only it applies to when you're still paying on your home, and it comes with normal mortgage closing costs and other applicable fees attached, so it really isn't as attractive an option. But, if you're drowning in credit card debt and can refinance to clear it up without putting your monthly mortgage payments out of your reach and risking your home, then this is a viable option.
Debt Management Services
If you don't own property and have taken a hit to your credit rating, there are some debt management services out there which may still be able to help you avoid bankruptcy and get out of that financial hole. These services work by contacting your creditors for you, and negotiating for lower interest rates and/or monthly payments. They can also consolidate your debts on your behalf, and freeze your credit accounts, preventing you from accumulating further debt.
Some services claim to be able to reduce monthly payments by up to 60%, though even a 10% reduction can often save an individual from bankruptcy, and following their plans can help you become debt free in a manageable amount of time.
About the Author
This article was written by a contributing staff writer of www.badcreditfinancingpage.com
While every effort has been made to verify the accuracy of the information contained within this article, this content is for informational purposes only and is not meant to substitute for the educated and informed advice of professionals.
Your consumption and use of the information published on this site is at your own risk.
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