Chickens Secondary Header
728x90 header

3 Effective Ways to Settle Credit Card Debts

how to obtain a pardon
by lisby1

Article by Sarah Smith

The Guinness Book of World Records gave Walter Cavanagh the title “Mr. Plastic Fantastic” for having 1,497 credit cards to his name. At one point, he also owned the world’s longest wallet. At least one in every ten consumers has more than ten credit cards in their wallets but on the average, each consumer owns four credit cards. Having more than one credit card may be useful for some people but the problem is managing the payments when they become due. There is also the issue of not being able to pay your bills in full because you didn’t keep track of your spending or that you simply don’t have the funds to settle your accounts.

Here are some ways to help settle you credit card bills:

Pay up. As simple as it is, you just need to pay off your debts. The trouble is when your resources do not allow you to do so. In that case, this solution is advisable when you have a smaller debt. Talk to your credit card companies, ask for your accounts to be closed, and then negotiate for a longer payment period. This does not relieve you of paying the whole amount but at least the payment will be manageable.

Negotiate with your creditors. There are times when your credit card charges get out of hand and you find yourself in a position where it is difficult (if not impossible) to pay them back on time. Pushing the payment later will mean additional interest rates that you cannot afford. If your credit card debt is more than ,000, it might be best to contact your creditors and enter into a debt negotiation or debt settlement.

This means that you will be paying an amount lower than what you originally owed and the remaining debt is pardoned. However, this is not as easy as it sounds because not everyone is eligible for a debt settlement. The credit card companies will decide if you are qualified so make sure you provide them with all the information they require to make a decision.

Consolidate your debts. Having several credit cards means, you also have several bills. Unless you have a very efficient assistant to take care of everything for you, you need to take care of them yourself.

For individuals with this problem, the solution you can look into is getting personal debt consolidation loans. This means you will need to borrow money (usually with your house as a collateral) in order to pay off all your existing debts so that in effect, you end up with only one liability.

Consolidating your credit cards debts also helps lower the interest rate and allows you to have reduced monthly payments because there is usually an extension of the credit term. To help compute how your loan payment will change if you choose to consolidate your debts, search online for debt consolidation loan calculator. There will be many to choose from so you will find one that is easy to understand and use.

Another option that some people take is to declare bankruptcy but it was not included here since it should be your last resort. It is not even something you should count as a solution because declaring yourself bankrupt might get rid of your debts at present but it will also make obtaining credit for the next decade or so very difficult.

About the Author

For more tips and information about personal debt consolidation loans, please visit debt consolidation loan calculator.

It's only fair to share...Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Digg this

Comments are closed.

Chickens Secondary Header
728x90 header
Search the Site
Script to Sales
film contracts
Chicken Pens and Runs
Application Selection