Credit Card Debt Solution
Credit card debt solution help is available, either through the Internet or your phone book, and the services offered don't vary much from one service provider to another. So the first decision on that score is whether or not you want to be face to face with someone when seeking a credit card debt solution, or you prefer the anonymity of online or telephone consultation. Credit card debt solutions are currently being offered by credit card companies themselves. Their keen competition for your dollar keeps them offering ever lower interest rates if you will just consolidate all your debts with them. Good as it sounds, this means of credit card debt solutions must be considered with caution. When using this credit card debt solution, make sure that fantastic interest rate doesn't end long before your debt is paid off, and you end up paying a higher rate for the last months (or years).
The credit card debt solution offered by most credit counselor companies is a consolidation of all of the debtor's unsecured debt into one account, and negotiating with the creditors for a lower rate of interest. Sometimes credit card debt solutions can be achieved through negotiating the principal as well, but that isn't as common. After an account is set up by the credit counselor in this type of credit card debt solution, the debtor sends a monthly payment to him for distribution to creditors. The end result is supposed to be a lower payment and total that is less than the debtor started out with. Of course, one of the conditions of this solution is that the debtor must give up all of his/her credit cards so the same pattern of getting into debt is not repeated. There are many of these credit counselors who are offering credit card debt solutions, and a lot of them are non-profit, so no fee is paid by debtor.
Home equity loans are sometimes used as a means of credit card debt solutions. If a homeowner has substantial equity in a home, the amount available for cash is greater, but it puts a lien on the house until it's paid off. With this credit card debt solution, should the homeowner want to sell the house before the loan is paid off, the amount remaining is deducted from the proceeds of the sale. A second mortgage has a similar result. Sometimes the only credit card debt solution is bankruptcy, but that is much harder under the most recent changes in bankruptcy laws. Besides, that means of credit card debt solution leaves the debtor with a bad credit rating for years. There is counseling offered by most companies offering credit card debt solutions, and this may be their greatest help to debtors. Financial advice after reaching a credit card debt solution can help a debtor establish a budget, a savings plan, and a brighter financial future where credit card debt solutions are never needed again.