Debt Relief Strategies Overview
There are many different strategies you can utilizie in order to achieve credit card debt reduction.
Many of these strategies are perfectly valid options for reducing debt, but which specific method is best for you depends on your unique circumstances.
The following is a list of the major legitimate options for debt relief. After each of the options is a brief description of the strategy and the people for whom that option works best.
You can learn more about the specifics of each of the following strategies by clicking on the links below:
BALANCE TRANSFERS - This strategy involves combining card balances on one low-interest card. It tends to work best for those with total credit card debt under $5,000 and who are current on their payments.
CREDIT COUNSELING - This method involves hiring the services of a consumer credit counseling service to help reach a settlement with creditors. Credit counseling tends to work best for people who are in debt due to short-term conditions such as layoffs or illnesses. Credit counseling is also now required of people who file for bankruptcy.
DEBT CONSOLIDATION - This debt relief strategy is similar to credit counseling and involves combining several high-interest credit card balances through either securing a personal line of credit or a negotiation with creditors. It tends to work best for those with total credit card debt in the range of $2,000-$5,000.
HOME REFINANCING - This method is self-explanatory, involving either refinancing one's total home mortgage or taking out a home equity loan and using all or part of the money to pay off credit card balances. It tends to work best for people with lower overall debt (under $10,000) and a larger mortgage (over $250,000).
SETTLEMENT FIRMS - these companies will negotiate a settlement on your behalf with your creditors. Often they can negotiate a reduction in principal on your credit cards to 50% of your total debt or less. The companies are not cheap, however, so this method is best for those with some cash to spare whose debt is large enough to warrant these expensive services.
DO-IT-YOURSELF-SETTLEMENT - This method can be very powerful, but also can be very time-consuming. But if you put in the time, it can be very worth while. This method is great for anyone who has the time and is willing to put in the effort.
BANKRUPTCY - This method should be a last resort for anyone. All of the above are bankruptcy alternatives that you should investigate and exhaust before even considering this option. Bankruptcy should be a last-ditch option only for everyone in debt.
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One of these methods should work for your. So check them all out, starting with BALANCE TRANSFERS.