What do you do when your credit card debt is beginning to pile up more and more? Is there a way to get out of it? How? Don’t worry – here are four steps to getting out of credit card debt.
- Find a payment strategy that works for you (maybe even two).
Examples of this can include paying more than the minimum requirement, starting with the smallest balance and working your way up, starting with the most significant balance and working your way down, or setting up automatic payments! The great thing about these payment plans is that they’re simple for you to work out on your own and you can double up.
- Consider consolidating your debts.
One account, one monthly payment, one place. When you’re looking at a lot of funds with different amounts, it can get overwhelming trying to figure out what to pay where and when. Though the number of your consolidated debt may be overwhelming at first glance, it may help you in the long run.
- Work with your creditors.
Reach out and explain where you’re at. Your credit card issues may negotiate payment terms or be willing to offer you a hardship program – you never know until you try! Either option could lead to more affordable, less daunting numbers regarding interest rates or fees. Plus, the worst they can do is say no.
- Get help through debt relief.
This can include a debt management plan, a debt settlement, or bankruptcy. For credit card debt, Chapter 7 Bankruptcy can get you debt free. Chapter 13 Bankruptcy can help to restructure debts into a payment plan over 3 to 5 years and could be your best bet if you want to retain assets. Bankruptcy can stay on your credit report for 7 to 10 years, however your credit score is likely to bounce back in the months after filing. Some debts, such as student loans and tax debt, typically can’t be erased in bankruptcy.
If you’re unsure how to go about eliminating your debts or have questions about filing for bankruptcy, contact Craft Law Offices at 252-752-0297. Leslie Craft will answer all your questions during your free consultation. Call her today and let her offer you peace of mind.