Credit Card Debt Relief Options - The Best Ways To Get Out Of Credit Card Debt 2010

Online, June 9, 2010 (Newswire.com) - Getting out of credit card debt can seem like a daunting task. Everywhere you look there seems to be someone or some company that says they offer the best way to eliminate credit card debt. Finding the right credit card debt relief option depends on the financial situation of the consumer. With several debt relief options available consumers need to understand what is best for their particular situation.

One of the credit card debt relief options is just paying back the minimums or slightly more than the minimums until the balance plus interest is payed off. For many this is not an option because they are in a position where they can't afford their minimums or their interest rate is so high their minimum payment doesn't reduce the total balance. Many consumers will spend their entire lives trying to pay off their credit cards by just making the minimum monthly payments.

The next credit card debt relief option is to look at debt consolidation. This is where consumers pledge collateral in order to receive a low interest loan from a lender. This is essentially trading off a secured debt for an unsecured debt. If the consumer has good credit and a very low debt-to-income ratio then they may be eligible for one of these loans. It's very important to pay this loan back on time because it is now a secured debt and the creditor can take the collateral, which could be the house, if they are unable to make the payments.

Another credit card debt relief option that can be utilized is that of credit counseling. Within these programs a company negotiates the interest rates and creates a program to have the balance plus interest payed off between 5 to 9 years. The payment for this program is usually around the sum of the consumers current minimum and in some cases slightly higher. The problem lies when they miss a couple payments during the program. Credit counseling programs are notoriously strict and often kick consumers out of the program after just a couple missed payments leaving them in a worse financial position than before.

The last credit card debt relief option that can be utilized to avoid bankruptcy is Debt Settlement . If a consumer is in a position where the minimum payments on credit cards are not able to be reached but they still have income coming in and want to avoid bankruptcy than this could be a very good option. What a debt settlement company does is utilize the relationships that it has formed with major creditors to negotiate the balances of the credit card debt down to a significant and affordable savings. It is important that consumers use a company that has attorneys doing the negotiating as opposed to non-attorney negotiators. If used in this fashion it can be a very effective method to escape the pains that come with filing for bankruptcy.

If consumers have over $10k in unsecured debt it would be wise to consider debt settlement. Creditors of unsecured debt are very concerned about collecting on their delinquent accounts and it would be wise to take advantage of this. Consumers and small business have never had a better opportunity to eliminate debt through a settlement process.

To locate Legitimate Debt Settlement Companies in your state check out the following link:

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