CREDIT CARD
DEBT SOLUTIONS


Credit card debt solutions are in great demand… and lucky for those in need they are readily available. 


Getting yourself in over your head with credit card debt is quite simple to do. 


Every day you get bombarded with mail offers for credit cards. And, it seems that the further in debt you get; the more the offers for even more credit cards increases. 


The two greatest demands for credit card debt solutions fall into two primary classifications. 


Eliminate Credit Card Debt 

Getting credit card debt relief is something that takes a lot of work. The route for you to eliminate credit card debt will have serious consequences on your credit score and future ability to obtain loans. 


Most credit card companies will offer debt elimination options to you if you they feel you may file bankruptcy. That is because they know that bankruptcy will give them only a very small recovery so they often are open to debt elimination proposals. 


Elimination of credit card debt is the complete pay off and closing of your credit card debts at a lower amount than the current outstanding balance. Most credit card companies will give you 90 to 120 days time to make the settlement payment


Impact on Your Credit Score 

The credit card companies are taking a write-off of a portion of the balance owed. This loss will be reported on the credit bureaus as a negotiated pay off. 


This will have a negative effect on your credit score. In addition, the closing of available credit lines also has a negative effect on your credit score. It is debatable if having slow payments or negotiated settlements have a greater negative effect on your credit score. 


One thing is certain…the combination of slow payments plus a negotiated settlement is a heavy hammer on your credit score. Try to have one or the other, but not both.

Consolidate Credit Card Debt 

A better way is to consolidate credit card debt. You can reduce your monthly payment giving you valuable breathing room. Plus, you can maintain and sometimes even improve your credit score with a credit card consolidation loan.


To consolidate credit card debt you can take advantage of a low fixed rate offer from one of your credit cards and pay off the others cards into just one credit card using transfer features available on-line or by using convienence checks. 


Another popular way is through credit card consolidation loans. 


Credit card consolidation loans are usually secured and in the form of a home equity loan. 


Many people will also do a mortgage refi and include their credit card balances in the amount they refinance. These “cash-out” mortgage refi loans may have a slightly higher interest rate or qualifying conditions then “regular” mortgage refi loans.