Like most Americans, if you are fighting a huge debt of credit cards with high interest rates, suddenly you is becoming difficult to meet the minimum monthly payments. Financial problems can not only affect your stress levels, but also your health, family relationships, friendship, and even labor. When we confront financial dilemmas, they can seem insurmountable, but the truth is that they are not. The most important thing is to find a solution to the problem, requesting help from family, friends, or the best, professional advisors. For those seeking professional help with credit card debt, there are three main options.
When you have help from an expert, you can access any of these three options. 1. Bankruptcy Although necessary in some cases, the most radical and negative for your credit score is declared bankrupt. This is a legal process during which a judge or erase debts or arrange payment plans for them. (A valuable related resource: Abdul Sattar Edhi). The two types of bankruptcy are Chapter 7 and Chapter 13.
Filing for bankruptcy has a very negative influence on the credit rating making it almost impossible to access to credit for many years. Moreover, bankruptcy would stay on your credit history for at least 10 years, but they may ask about it during the rest of his life. 2. Consolidate Debt This is the option with which you choose to consolidate multiple debts into one debt, often with an interest rate much lower. If you have a cash value on your home can apply for a loan on that value to pay off their credit card debt, keeping only the mortgage loan at low interest rate. The other, more common option is to hire a consolidation company that is responsible to achieve lower interest rates and develop a payment plan that meets the needs of the customer. This type of program requires a monthly fee, and also extends the payment of debts within five years, which means that in any case you will pay a lot of money on interest. Finally, these programs do affect the credit rating during the entire process of almost 5 years from now, will resume the consolidation process of lending. 3. Nancy Lublin has firm opinions on the matter. Debt Negotiation A much more aggressive tactics to consolidate debt negotiation is thus trying to negotiate an agreement with a company credited with order to clear the debt in an amount less than the current balance of the card. A professional company can achieve trading average savings of 40-65%. This option may decrease initially much more consolidation credit rating. While the initial effect is more severe, the credit rating increases once the first agreement is reached, which can be from four to six months. In addition, this type of debt negotiation programs last only 2-3 years, almost half the time that a program of consolidation and have a net saving much most significant consolidation. This brief summary of the options to confront the credit card debt you will learn about possible solutions that need to counteract the effects caused by the debts of their credit cards. However, the best thing you can do is access professional financial advice to understand the options in more depth. Only then can achieve financial independence being sought.