Credit Card Debt Assistance

How could a small rectangle of plastic result in intelligent people being ensnared and placed at risk of ruin by hundreds of thousands of dollars in credit card debt? Seems like it all began innocently enough, fiscal convenience and paid in full monthly, so where did it all get so out of control?

Piling Credit Card Debt

There are several reasons people can get sucked into the spiraling vortex of credit card debt. Some people are simply living way beyond their means, others are using a credit card in lieu of genuine income sources, others insist on acting on some unfounded hope that things will return to a formerly flush financial state, others have decided to use their credit card for a long term loan, and others blindly take on long term credit card debt for readily fungible goods; soon the goods are gone and only the debt remains. Maybe, as the Jackson song says, it's time to take a long look at "the man in the mirror" and "ask him to change his ways" before innocent, innocuous credit card debt becomes an overpowering monster controlling and limiting all of your life choices.

Determining APR Charges

The "APR" is short for the annual percentage rate. Each month the credit card company figures your average daily balance then they take the annual percentage rate, APR, and divide it by 365 days to get the daily rate. The daily rate is then multiplied by your average daily balance to determine the interest amount on your account balance for one day. That amount is then multiplied by the number of days in your billing cycle for each bill to determine the total interest charge for that billing period. A billing period is usually thirty days long. For example: 14.99% APR means 1.25% per month and so for each $80 that you owe on the card, you will be charged an additional $1 per month.

Credit Card Debt Reduction Options

Immediately stop using the cards and pay them down as possible. Reduce household expenses and find a way to earn extra income to pay the debt.

Credit Counseling

Credit counseling can involve credit debt consolidation without another loan. The credit counselor works with your creditors to reduce your interest rates and eliminate your fees. You will often be required to make a payment on the debt of at least 2% through this method of credit debt relief.

Debt Settlement

This option is a reduction of the current credit card balance made by the creditor through credit debt negotiations with you or your representative. Creditors often will agree to a credit debt reduction settlement where they think a debt settlement will be in their own best interests. They make that kind of assessment where the requesting debtor appears to be a legitimate candidate for a bankruptcy. The creditor knows that in most bankruptcy cases they would receive nothing and so they opt to take a discounted settlement on the debt rather than receive zero dollars in a bankruptcy.

Credit Card Debt Bankruptcy

Bankruptcy is the final option that will result in a reorganization of all of your currently unsecured debts. It should be used only as a last resort because it will stay on your credit report for seven to ten years and involves significant court and legal processes.

Getting Credit Debt Legal Help

In the last analysis, it is inescapably apparent that seeking out the assistance of credit debt settlement attorney before taking on any plan to reduce or repair significant credit card debt is the only reasonable option on the table. The repercussions of your actions in a debt collection scenario can have very long lasting effects. It is important to be sure you are taking the best available actions to protect your credit and your future. Only a credit debt settlement attorney can properly guide you in making the right choices to insure the fresh start you need to begin again, on greener terms, all lessons learned.