Are you swimming in credit card debt? Are you literally maxed out and cannot make the minimum payments? If so, you are not alone. It’s become nearly commonplace for people to be carrying more credit card debt than they can possibly pay off. The situation has so become so widespread, many say it’s a pandemic. Living above one’s means and bridging the gap with credit cards is a practice that’s run rampant through our country. As a nation, we have accrued an astonishing mass of debt. In just last few years, it’s exploded to quantities never before seen in our history. Once people find themselves with all their credit cards maxed and facing minimum payments they cannot meet each month, they begin to panic. If they’re smart, they begin to investigate how to eliminate credit card debt legally.
There’s one thing you need to know about credit card debt. It is what we refer to as ‘unsecured debt.’ What does that mean? Unsecured debt is debt which is incurred without any physical objects put up against the debt. In other words, no collateral was required to secure the loan. If the payments are not made, the bank cannot repossess an item in order to recoup their funds. No one will appear at your front doorstep in order to take possession of anything you own. If you were to be taken to court over the debt, it would be to civil court. The point of all of this is that if you were to choose not to repay your debt, that behavior is not considered illegal.
This is not to say that there wouldn’t be consequences. If you do not make payments on your debt, then your credit rating will undoubtedly suffer tremendously. It’s likely that you will never again be given a loan for anything else. Think about that. If you ever needed to buy a car or a home, if you wanted a store credit account, you would be denied. You do have a contractual agreement with the credit card company and by choosing not to pay them, you would be in breach of contract, which isn’t looked upon favorably in the financial world. If you were to decide to simply stop making payments on these accounts, you would eventually find yourself unable to even be approved for layaway. Your credit identity would be known as a parasite. Doesn’t sound like a good option, does it?
So rather than simply avoiding paying your bills, the smarter move is to exercise your right to utilize various programs created by the credit card companies themselves. These programs aim to allow consumers to pay off their balances. There are specialized organizations whose mission is to assist consumers with their credit card debt management. These companies exist to enable people to climb out of debt. Many people need these companies because they feel badgered by their creditors. They do not feel they can bargain with the credit card companies because they feel so overwhelmed, ashamed and intimidated. There’s a great reason many people feel this way. Ever talked to a collection agent? It’s pretty well known that they have the personality of Attila the Hun with a migraine. These people have a singular focus. They care about one thing, and one thing only. What is that? To force you to write a check to them, no matter what else you may have to forgo in order to do so. They’re well trained in how to bully, browbeat, menace and torment.
Third party organizations can truly help you out in this situation. They are more than happy to withstand the verbal abuse these collectors want to dish out and still stand their ground. After all, they aren’t emotionally involved like you are. They are not the ones who have no money and no idea where the next bit of cash will come from. So they can be calmer, more logical, and stand toe-to-toe with those collection agents. The process works like this: you write up a list of your creditors. You detail how much you owe and what your minimum payments usually are. They will take it from there. Ready for the very best part of this offer? You don’t have to pay them any money upfront. “Let me get this straight,” you say, “I don’t have to take any more abusive phone calls. And I also don’t pay any money to this company?” Are you scratching your head in confusion, wondering what the catch is? No, you’re not confused. That’s precisely how this works. You stop having to field calls from collectors and you don’t have to write a check to the third party company either. And get this: in 99% of the cases, your monthly payments drop considerably. In fact, after using these companies, people report that they have some financial breathing room again for the first time in years.
As great as these companies are, lots of people have never even heard about them. A lot of people are suffering the indignity of endless phone calls and harassing collections agents when they could be using this entirely legal avenue to resolve credit card debt. Imagine it: eliminate credit card debt legally. I guess it’s not that shocking that few people are aware of this option since the credit card companies certainly want to keep consumers in the dark when it comes to this solution. This option is gaining popularity across the country. More and more folks each day call up one of these companies and breathe a sigh of relief as they watch their credit card debt shrink before their eyes.
There are other means to eliminate credit card debt legally. However, the options available have a lot of problems associated with them. Read on to learn about two of these options.
1. A consolidation loan – Consolidation loans can be a good solution for those consumers whose credit score is high enough to qualify. Other consumers can qualify by using collateral. Sounds great, right? Yeah, except the part where you realize that if you had credit that good, you wouldn’t be struggling to pay your bills, would you? And if you actually owned something that would constitute a collateral, then you might have already sold it to rectify your debts. If you do still own something of enough value to secure a loan of this size, it’s not really financially savvy to put it on the line to get more debt. Once you begin thinking about it, it seems pretty silly. Doesn’t it? It’s not really a viable option.
2. Borrow money from your family members or your friends – Here is where things get uncomfortable and hairy. If you’re already struggling to pay your existing debt, how is taking on more debt going to solve your problem? If you do convince a loved one to extend even more money to you, you’ve now put yourself in a very awkward situation. Ever heard the adage: Don’t loan money to family or friends? Well, there’s a reason for that. These situations rarely turn out well. In fact, these type of situations are exactly the fodder that day time talk shows are made of. If you’d like to see yourself on Judge Mathis or Jerry Springer, then go ahead and hit someone you’re related to up for some cash.
Once you’ve dug a deep financial hole for yourself, there is really only one viable option to alleviate your discomfort. When you can’t pay your credit card bills, you can only make one move. You have to call a third party negotiator to talk to your creditors. They can convince them to either lower your monthly payments or even reduce your entire debt amount. It’s that or take on even more debt and burn bridges among your family and friends. Gosh, when you put it that way, the choice starts to get really clear, doesn’t it?
The important thing to remember is that time is not on your side. If you’re already behind on your payments, then your account has been flagged. Once it is officially sent to “legal,” your options grow very slim, very quickly. If they’ve put your account with their legal department, then there will be no negotiation. It won’t matter if you call or your third party negotiator calls. No one will be able to move the creditor at that point. If they’ve referred the account to their legal department, then they are planning to circumvent you and get their payment directly from your paycheck. They may even be planning to put a lien against something you own. If you truly want to get out from underneath this crushing debt, you must take action now.