Let’s begin with an introduction: you may be in a situation where you cannot resist the temptation of big new debt. If you don’t have the discipline or the will power that will get you out of the situation, you will be forced to consider debt consolidation programs in the future. The result: you are faced with the dilemma of whether to seek the alternatives or go ahead with a debt consolidation plan.
As you will tell me, I used to be very concerned about savings from credit cards. But then something happened. As if I had not fallen victim to a credit fraud – I had to cancel my credit cards. This, of course, caused my credit rating to plummet. As if it were a big deal – I had been sucked into a financial vortex. The only person I can actually call, was my son.
The whole ordeal left me the horrible sensation of being trapped by a financial debt and unable to go ahead with any major options: buying a house, getting a car or even getting a job. But the thought of the consequences was never in my nightmares. I am convinced that I only spent $50,000 on credit cards last year – a quarter of the amount I used in the past decade.
So, yes, you must seek the alternative if you are tempted by the thought of credit debt: consolidation loans. The options are clear: consolidate your credit cards and try to get a bankruptcy designation or better yet, seek debt settlement. Either way, that will mean better rates and options for you. My advice is: seek alternative options. Don’t wait until you are bankrupt to get the plan.
When you are under a bankruptcy designation – if you do so will mean: consolidation loans to consolidate your debt. If you manage your credit card debts with the help of the creditors you can eliminate your credit debt. This will lower down the road to a good credit rating that is secure and manageable.
Debt consolidation means your debt consolidation becomes subordinate to your ability to pay your credit cards.
Credit Card Debt And Its Consequences
Would you rather be financially secure or not having a credit card or other form of credit because of financial concerns, you might ask? Well, you probably get the answer yes.
Each year more than 130 million people, most of whom are under the age of 50, have credit card debt. This includes credit cards, personal loan payments, loans, debt services and utility bills. More than 50% of all UK adults have at least one late payment. If you have problems paying your monthly repayments, it is not the end of the world. If you have many late payments on your bill there will be a high chance of your bill eventually being paid. Getting out of debt is easy but that doesn’t mean you can’t get one of these too. In fact, bankruptcy is probably the decision you make at the very least.
One of the easiest ways you will get out of debt is to seek the help of a debt counseling service. For individuals making an extremely poor choice of methods, a debt consolidation service may be the only solution at this particular stage. However, the services and institutions that offer debt consolidation will generally negotiate a plan that is more realistic to your needs.
A debt consolidation company will also look into your debt level and possibly provide additional services such as checking with other financial institutions, providing letters of credit and referrals to their specialist debt service agencies, arranging debt management classes and arranging to have the referrals taken over the Internet, taking the decision to seek help through an individual provider.
Credit Card Debt
It is so easy to find yourself in a situation in which you cannot adequately repay something you have borrowed. This is why it is so important that you learn how to repay your credit card debts. Read on to get a handle on your debt problems.
The Debt Problems
Getting through to the creditors is no easy task. Not only will it take some time, but the process of getting out of debt is complicated. There are several things you will want to take into consideration when assessing the amount of debt you are attempting to repay so that you can avoid the pitfalls of getting into debt.
The first thing you will want to look at when assessing the debt you are attempting to repay is your income. What this income would have been five years ago is no longer relevant. Having a breakdown of your income could have been much better done.