“I’ve got too much credit card debt!  What’s the best way to eliminate it?”

 You have a few options:

• Hit the lottery and pay them off in a lump sum…yeah right!
• Continue making minimum payments…forever.
• A Credit Counseling Program or what is called Debt Management today.
• A Debt Settlement Program, or if all else fails…
• Bankruptcy

Short of paying off all of your credit card debt in a lump sum, you know that making minimum payments is a trick the credit card industry has been fooling consumers with for a long time.  Making the minimum payment on your cards could take 10-15 years and end up costing you 3-4 times the original amount you borrowed because of the interest rates and hidden fees.

Debt Management (formerly referred to as Credit Counseling) makes sense if you can afford the required payment of the program.  Legitimate DM programs will arrange repayment plans with each of your creditors that will lower your interest and fees and usually allow you to pay off all of your cards in about 48 months.  If you can afford the payment, this makes sense.

Debt Settlement is for those who cannot do any of the above.  Legitimate Debt Settlement companies will negotiate with your creditors to satisfy the debt for around 50% of the debt.  Your credit report will show this debt as having been charged off, but then it will show that it has been “paid as agree” or “account settled”.

If you cannot qualify for any of these programs, then bankruptcy may be your best or only option.  Be sure to seek the advice of a competent bankruptcy attorney.  It’s not a bad idea to get a couple of opinions when looking into bankruptcy.

The Fair Debt Collection Practices Act (FDCPA) clearly states what a debt collector may and may not do when contacting you in an attempt to collect a debt.  Harassment is the single most prohibitive action.  They cannot harass or use abusive language when speaking to you or when speaking to any third party that may be helping you.

For example:

• A creditor is NOT permitted to contact you before 8am or after 9pm.
• A creditor is NOT permitted to contact you at work after you have requested them not to by mail or fax.
• A creditor is NOT permitted to use obscene or profane language when speaking to you.
• A creditor is NOT permitted to make false statements, such as threatening to take actions that they cannot take or have not intention of pursuing.
• A creditor is NOT permitted to use threats of violence.
• A creditor is NOT permitted to publish a list of names of people who refuse to pay their debts.

If you feel a collector has violated your rights, you may contact your state Attorney General's office www.naag.org and the Federal Trade Commission www.ftc.gov.

To learn more about debt collection practices and your rights under the law, visit http://bit.ly/9SxgYF.  

Federal law prohibits creditors from taking certain actions in attempting to collect debts. A creditor has the right to call or contact you if you are delinquent in your payments, but they must do so within the guidelines of the Fair Debt Collection Practices Act FDCPA.

To stop a creditor from calling, you must submit a letter to the creditor demanding that they do not call you. To do so, you will need the address of the creditor. If you do not have a recent statement or letter with that information, you may need to call the creditor or go online.

Simply state that you intend to repay this debt (unless you are going to dispute it), but are not in a financial position to do so at this time. State that you do not want them to call you at home or at work about this matter anymore and that if they do so, you intend to contact the Federal Trade Commission FTC and the Attorney General in the state where you reside.

Send the original by certified mail and make a copy for you file. It is worth the small fee to pay for a “return receipt” so that you can prove that they received the letter.

The creditor may only contact you once again to state that they will not contact you again or that they intend to take action such as filing a claim for a lawsuit.

Sending the letter does not get rid of the debt, but it should stop the collector for calling for a few months. When a collection agency fails to collect a debt for their client (Citi, Chase, etc.) within 90-180 days, most creditors will take that account back and send it to a different collection agency. If this happens, you may need to repeat the process with the new collector.

“I have too much credit card debt and not enough income! I don’t want to file for bankruptcy, but I don’t know what else to do. Are there any good alternatives to bankruptcy?” We get asked this question several times a day. The answer is YES! There are some great options available to help you avoid bankruptcy and get back on track.

If you are overwhelmed with too much credit card and other unsecured debts, you are not alone. With almost 1 out of 10 people unemployed and the economy in its worst condition since the Great Depression, thousands people who have always kept up with their debt payments in the past are in trouble and looking for answers.

Debt Management (formerly referred to as Credit Counseling) is a program designed to give the consumer one payment that is then distributed to each to the creditors enrolled in the program. The interest rates and fees are reduced and usually this type of program allows the creditor to be debt free in about 48 months.

Debt Management is a great option, however many people who are struggling financially cannot even keep up with this reduced monthly payment. In that case, more and more people are seeking help with their debt through Debt Settlement.

Most creditors are willing to accept a reduced payoff to accounts that are 180 days or more delinquent. This normally averages 50% of the balance and sometimes even less. Most Debt Settlement Programs are designed to completely settle all of your debts in 36-48 months, depending on the total amount of debt, type of debt and what your budget will allow you to contribute.

If your financial circumstances won’t allow you to qualify for Debt Settlement, then you should seek the advice of a bankruptcy attorney. Bankruptcy should be your last option, but in many cases, it is the only and best option.

The recent financial crisis had its origins in the credit crunch, specifically the mortgage housing meltdown. People simply took on too much debt in relation to their paying capacity. The situation can’t be expected to last or continue forever without serious corrections and that is what’s precisely happening. People were in effect spending beyond what they earned by taking on too much credit. This simply was an unstable situation where people were spending something they have not earned yet. The most recent indications are that people have wizened up and are now spending more frugally.

Fiscal Discipline is Key

For those who still have jobs; a more rational way to manage their finances is to seek debt relief. Debt relief is designed to make things more manageable by coming up with a decent repayment plan. In other words, the people seeking debt relief need to stop getting new debt and pare or pay down their existing debts. In short, what some people do is enroll in debt settlement programs that will get them out of debt painlessly and in less time than they think. This action requires fiscal and financial discipline by sticking to the program at all times until such time all the debts have been paid off.

Pay off all debts

Due to the excesses of prior years, it is inevitable many people will have to face up to debt settlement as a sensible way to stay off expensive credit cards and put their lives back in order. In many cases, people find they can live comfortably by not using credit cards, or only very sparingly. As a matter of fact, many people who got burned with excessive debt levels are now reluctant fall back in the credit card trap. Debt settlement programs are highly recommended to people who are addicted to plastic money.

Stay off all debts

After paying off all debts, the wise thing is to stay debt-free for the rest of your life. Nothing beats the pleasure and comfort of not having to worry about making next month’s minimum payment. A debt-trap is very easy to fall into, sometimes starting with innocuous or insignificant purchases; however it gradually becomes a habit very hard to break. Breaking this habit can help people stay debt free for life. This is one of life’s most painful lessons to endure for many families.

The recent financial crisis has awoken consumers to a new way of look at the world of debt. Many realize how precarious their situations may be due to many outstanding circumstances including loss of job, decreased benefits and income reductions. In addition, many of them have incurred so much personal debt such as credit card debt, personal finance debts and medical bills. Falling in this debt trap leaves consumers with various alternatives.

Don’t fall into a Debt Trap

Many people find it difficult to get out of the debt trap. Just like any bad habit, people need alternatives to assist with fixing their problems. What most people need is bankruptcy counseling. It is designed to teach people the error of their ways and then formulate steps to get out of debt permanently. Bankruptcy counseling is intended to assist consumers through the decision-making process looking at the advantages and disadvantages.

The Smart Solution

Filing for bankruptcy protection should always be a last resort. In many cases, people aren’t aware of the process or rights they are entitle to regarding bankruptcy. Through bankruptcy counseling consumers can learn the best course of action for their families. In some cases, the inability to pay bills can result in court action by creditors. To mitigate this it’s best to be proactive when it comes to bankruptcy considerations. Through bankruptcy counseling, families and individuals can get answers to those difficult questions life throws at all of us.

There are different forms of Bankruptcy, such as Chapter 7 and Chapter 13. Knowing the difference between these is what bankruptcy counseling is all about. Some consumers may be best suited for one type of bankruptcy over another. How can you know which one is best for you and your family? These answers can easily be answered for you and your family by sitting down with a bankruptcy counselor and learning about the advantages and disadvantages of both. At the end of the day, you need to know what bankruptcy you qualify for.

Once you’ve decided what type of bankruptcy is best for you. Filing for your bankruptcy is the next concern. By working in bankruptcy counseling, you can find out which law firm provides the best filing solution for you. The cost to file for bankruptcies varies greatly from one attorney to the next. Make sure that you are working with a reputable company with an affordable fee that has your best interest in mind.

Even with the hard economic times, it is still possible to put in place certain measures that will see to it that the whole tightness when it comes to spending money is dealt with in the best way possible. By putting in play some of the top ways to beat the recession and credit crunch can help a lot in dealing with instances of avoiding stress scenarios.

When it comes to dealing with the case of recession and that of credit, it is very wise that one approaches this whole case with a straight mind. Getting to panic can for sure be one of the reasons that would lead to one getting to be hit hard by the whole money issue. To help avoid this it is wise to look at the best options when it comes to achieving the best outcome. This can also be helped further by there being the mindset that the recession period is only a temporary thing and that good times are set to come sooner. By concentrating on the bad results that he or she thinks will befall them only acts to make the case all the more worse and this can really act as a catalyst of seeing to it that the money crunch get to affect you the most.

When it comes to the managing of your finances, it is always wise to use those ways that will see to it that you maximize the most when it comes to spending the money. Having a command of how you use your money will help see to it that more and more correct choice. It is also important to have that notion that the hard economic times be not in control of how you use your money. This continuous thought will help you develop a positive attitude especially in matters that concern finances. Credit counseling on how best one can use their money can also help a lot here.

Another of the top ways to beat the recession and the credit crunch is to do the most logical thing and spend money when it is necessary. One can achieve this in a number of ways. First and foremost, it is very important that when it comes to purchasing certain items it is better to look around for the cheapest item. This eliminates instances of purchasing an item at a much higher price as compared to another item that is similar. It goes without saying that in times of difficult money time it good to have wise money spending tactics. At the end, not only does one come out with a debt relief but you also end up feeling much better.

Taking measures to see to it that you get to find ways of earning that extra cash can also help when it comes to achieving top ways to beat the recession and credit crunch. This even though may seem as a long shot at first it is important to look around for that one job that works for you. Never giving up and maintaining a positive attitude during this period can help a lot in ways that will ensure you end up on top even with the hard economic times. With one realizing the income achieved here paying of the credit debt can ultimately be achieved.

A government relief is one sure way of paying off old debts from credit cards. The lean economic times have made it impossible to avoid debts due to rocketing gas and commodities prices. Because of this many people have who have to get the means of survival have resorted to cutting their spending because their budgets are not adequate to put up with rise in prices. A rising credit card debt can indeed be frustrating and the situation can make one seek desperate ways of getting out of the rut but sometimes disappointment is inevitable. The times are tough and because it has proved hard to maintain a good budget most people have found themselves resorting to using credit cards which has thrown them into mire pit of bad debts and bankruptcy.

One of the secrets of debt relief is the getting a government relief so that one can stop wetting the pants on how to many those huge payments at the end of the month. Government grants are usually availed by the government to those who are in dire need of being saved from bad debt and bankruptcy. The government will always give away grants every year and a lot of money is spent in this, as it understands the need of getting its people out of debt. A government cannot thrive when its citizens are in bad debts and so this acts as a strategy of stimulating the economy and the government knows the importance of this.

The next task in seeking debt relief is to look around for the possible opportunities for grants. It is however imperative to know that grants are usually determined by the applicants ability to get out of debt and the personal needs of the hour. A person who is in dire need of getting out of debt and has more pressing needs is likely to be a beneficiary of government grants. The first step of getting debt relief from government grants is to first determine the amount of debt that one is in. This should include gathering all the documents and all the receipts and then calculate the amount of debt that has accumulated. Applying for a government grant requires one to know the precise amount of debt that one has. One can also refer from the internet and check the credit card report.

Seeking government grant for debt relief requires one to consult various sources and the internet can be a good source. Grants.com usually provides crucial information on grants. These websites are helpful as they give one the opportunity to apply for several grants thus increasing the chances of getting out of the rut. One is supposed to download the application form and then fill it before sending it to the relevant office. Federal grant catalogs are also resourceful sources of seeking grants and attaining one can be first step to getting debt relief. These catalogs can be found in community libraries as well as in civic centers. One however requires being persistent and should apply for as many grants as possible. Usually the first grant does not do too well and so it requires much pushing until one gets approved.

Depending on the needs they have at any given time, most people tend to end up with many outstanding debts that eventually plunge them in an economic crisis. However, by learning a few debt relief strategies, they can be in a position to experience financial freedom. There are two simple steps to achieve this, one is to stop spending much, and the second one is to always work on a budget. These are pointers that most people miss out on, yet if adhered to would free anyone from financial hardships.

Due to the tendency of most people to spend haphazardly and as such end up borrowing more loans to keep up their trendy lifestyles, there are instances when credit-counseling sessions become a necessity. This specially designed to teach people how they can avoid getting into debts that they cannot pay. Among some of the major reasons for joining, a credit-counseling program is that people get taught on effective ways of debt consolidation techniques. These are designed to ensure that all the debts can be compressed into one entity, this goes a long way in reducing the interest rates, and as such, loans that could take up to twenty years or more can be paid in a span of three to six years at the most. Though you take one loan to pay off all the other loans, it is vitally important to remember that the original amount does not change only the interest rate will.

Credit card consolidation is also known to work greatly in reducing debts and ensuring that people are able to maintain and at the same time settle outstanding debts. Simply put, this means getting rid of credit cards that have high rates and getting one with a low rate. For instance if one has $ 250 on every credit card they own and pay a rate of which pay twelve to three percent, this can be moved to a third card that has a five percent rate this ensures that the money someone is saving on all the other cards will make up for taking care of your credit debt. However, for this to work efficiently, it is important to ensure that all those other cards are canceled before talking up the third one.

In most cases, failing to settle debts in time can eventually lead to a state of bankruptcy. This is a tight spot to find yourself in because ninety-nine percent of the time, all the property you own will end up been divided among all your creditors and at times, it is never enough to cover all the expenses. This however can be avoided by following through with payments in time and ensuring that the principles earlier stated are followed. The best way to attain financial freedom is to ensure that one does not use credit cards often, instead of opting to pay off using cards use cash. When taking out loans, it is also important to take out small loans, which are easy to pay off and always use online calculators before taking out a loan, as they are able to calculations on the interest rate to be paid. The last option for staying out of debt is selling off any expensive and unnecessary assets.

There are so many people who are wallowing in the miasma of bad credits and debts, and what is common about such people is that majority of them are in such predicaments due to loans they took, and failed to repay. Loans and dependence on credit cards are among the leading causes of extreme debts.

Having said that, what is important is that such people ask themselves how they can conquer credit and credit problems. The first thing one should strive to do is to ensure that they learn to live within their means. This means doing away with unnecessary expenses, which may quickly lead you to bankruptcy. Bankruptcy means that you are not in a position to withdraw any money in the bank, which you may have used to repay some of your debts. Another thing, which is important if you have to conquer your debts, is that you are always on time in your debt settlement. Failure or default in your debt settlement will lead your creditors to penalize you heavily, and as time goes by, the penalty increases. In fact, just as they say that one trouble leads to the other, once you default to repay your loan, your credit card score is also dented. This means that you have credit debt, and each time you approach a bank with intent to borrow some cash, you will not succeed.

If you really feel that you have a problem with your debts, it is the high time you went for credit counseling. You seek the services of a counselor in financial matters, who will advise you accordingly. A credit counselor will listen to you, and advise you in the most appropriate way he deems fit. He could advise you to opt for a credit card consolidation. A credit card consolidation will help you bring all your debts together, and the counselor may help negotiate on your behalf with the lenders to have them reduce the interest rates you have to pay. You can also try to make use of credit consolidation, and negotiate for new terms of repayment with the lenders. If such s deal went through, you would be in a position to bring all your debts together and then paying them gradually after a certain times and not necessarily monthly.

However, when choosing the right credit card consolidation program, you may have to part with an upfront payment. This may be like adding insult to injury, but a credit counselor can help you chose the most reasonable program. A credit relief may also help you conquer credit and debts. You negotiate with the lenders, and if they are convinced that you having trouble with repaying your debts, they may offer you more appealing terms of payment. Credit relief may see you paying the debt at an agreed time, unlike in other programs where if you agree to be paying at the end month, you have got to keep your promise. The long-term strategy for conquering your debt problems lies in improving your credit card score, so that you can access loans if you needed them urgently.