Consumer Credit Card Debt Relief - The Top 3 Debt Relief Options For 2011

Online, February 21, 2011 (Newswire.com) - The demand for consumer credit card debt relief is at an all time high. Millions of American consumers are trapped with massive credit card balances and simply cannot afford to pay it back. Most of these consumers in the past would have simply filed bankruptcy however new federal laws make bankruptcy much more difficult to qualify for. There are however other credit card debt relief options worth considering and here we will outline the top 3 options for 2011.

Credit card consolidation is one option. This is ideal for consumers and small businesses with several high interest credit cards. Credit card consolidation will combine all the high interest unsecured debts and trade it for a low interest secured debt. A consolidation loan will require a secured asset such as a house to back up the new loan. While your payment will be lower and you will save a lot of money in interest payments, if you default you could end up losing your secured asset.

Credit counseling is another debt relief option. This is similar to debt consolidation but there is no secured asset required. Credit counseling programs negotiate and lower the interest on your credit card debts. Therefore you will be making one payment each month, typically the sum of your current minimum payments and required to pay it back over a period of 4-6 years. The programs are great if you can currently afford you monthly minimum payments and will be able to do so throughout the course of the program. The biggest drawback however is that you can end up being kicked out of the program after just a few missed payments.

The last option is debt settlement negotiation . Debt settlement is intended for individuals and small businesses that are going through a financial hardship and are struggling to pay their bills. Debt settlement is a debt relief option that is only intended for individuals who are experiencing a legitimate financial hardship and are struggling to pay their bills. Unfortunately this is a growing segment of the American population. There are more consumers trapped in massive credit card debt balances than ever before. If you are struggling to only make the monthly minimum payment than a debt settlement can make financial sense. Making only the minimum payment with interest rates where they are currently can take forever to pay off the balance therefore many consumers attempt to negotiate with creditors to lower their overall balance.

It would be wise to speak with a debt relief specialist before making any decision for debt relief. They will be able to go over all your options free and offer non-biased suggestions on what option is best for you.

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