Debt is very much a part of the modern society. According to research, we all owe someone something. Financial experts agree that not all debt is bad and in fact, at times it is necessary. It does not take an expert to let you know that grave debt can be a source of enormous stress in view of the consequences that will follow, if you do not take steps to correct the situation.
If you have maxed out all your credit cards and getting into deeper debt every day, you have three main options of credit card debt negotiation that can help you correct the problem.
1. Negotiate with your credit card company
One of the debt consolidation solutions you can use to get rid of your debts it to talk to your credit card company. Even if they have turned you down before, do not give up. Instead of using a company to talk to your creditor, do it yourself. This will save you additional cost, and will show the creditor how bad your situation is. Be persistent but polite when talking with your creditor.
Before you go to your creditor to negotiate for a deal, have your facts right. Make sure you always keep good records of your debts. This will help you to explain better your situation to the credit company. Your aim is to get the creditor to agree to a modified payment scheme that reduces your monthly payments to the amount you can afford. If you do not pay your debt for over 6 months, the creditor will write it off as a loss and this will reflect on your credit score. Do not let things get out of hand.
2. Use a credit counselor
At times, the load might be too heavy to carry on your own. Using the services of a credible credit counseling organization can offer you advice on managing your debts. They offer free workshops and educational materials, and they would help you create a functional budget. Officials from these organizations have training in consumer credit, budgeting, and money and debt management.
These organizations are often non-profit and are widely available in many avenues. However, this does not necessarily mean that they are free, and some may charge high fees. You can confirm the legitimacy of a credit counseling organization by checking the trustee’s list of organizations that are approved.
3. Declare bankruptcy
If you are out of options, then you should consider declaring bankruptcy. However, before you do this be sure you are aware of all the implications. Bankruptcy will hurt your credit score in a major way. It will take you a whole decade before you can rub off the effects of bankruptcy from your credit score. If you decide to go ahead with the bankruptcy, it is vital to file it properly.
Whichever way you decide to deal with debt, as long as you have looked at all the options available for you, and have sought the counsel of experienced financial advisors, you will be fine.
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