Credit Card Debt Relief Buyer’s Guide
Are you struggling with credit card debt and can’t come up with a plan to get out of debt on your own? Credit card debt is a big problem for many Americans. With the recent financial crisis, a lot of people have watched their credit card debt increase as they struggle to get by each month. If you’re looking for credit card debt relief help, you’ve come to the right place. At StaticGeek, we’ve reviewed the best credit card debt relief companies that will help you learn how to settle and eliminate your credit card debt once and for all.
The first step to paying off credit card debt is contacting a credit card debt relief service. Reputable credit counseling organizations can help you learn how to manage your money and debt, create a budget and often offer various educational materials and workshops for free. These certified counselors will discuss your financial situation with you and help you come up with a personal plan to reduce credit card debt.
If your financial woes all stem from having too much credit card debt (and/or your inability to pay your debt), then your credit counseling agency will likely recommend you enroll in a debt management plan (DPM). A DPM is not for everyone, so don’t sign up for one unless you’ve spent a lot of time with your certified credit counselor reviewing your situation. If you enter into a DPM, you want to make sure it’s personalized for you.
A DPM helps you pay off credit card debt by depositing money every month into a savings account monitored by your credit card debt relief service. Your credit counselor uses that money to pay off your credit card debt according to the plan you developed. Your creditors may agree to lower your interest rates or waive certain late fees. In order for a DPM to be successful, you must make regular, on-time payments. Most DPMs take about 3-5 years to complete, so make sure you’re committed to paying off credit card debt for the long run.
Your credit counselor may also try various credit card debt settlement programs as well. Credit card settlement is a process when your credit counselor negotiates with your creditors to allow you to pay a “settlement” or a portion of your debt that is less than the full amount you owe. In order for you to make that lump sum payment, you’ll have to set aside money each month in a savings account. During the time you’re working on settling credit card debt, your counselor will likely encourage you to stop making monthly payments to your creditors.
Settling Credit Card Debt Has Risks
Paying off credit cards takes time, and while your debt settlement company may be able to settle your debts, there are some risks associated with these types of programs. So, before you sign up for a credit card debt relief program, make sure you know the following risks:
- Credit card settlement can take anywhere from 3 to 5 years to complete. Make sure you look at your budget and are financially capable of following the budget you’ve set for the full length of the program.
- Your creditors don’t have to negotiate a settlement. It’s possible that your debt settlement company won’t be able to settle some of your debts, even if you set the money aside.
- Negotiating credit card debt always begins with small debts first. So, while you’re paying off some debt, your large debts continue packing on interest and other fees.
- Your credit score will be damaged. Most credit card debt relief companies encourage you to stop making payments to your creditors while you’re working with them. Not making payments can have a negative impact on your credit score and may lead to other serious problems.
If you’re drowning in late fees and aren’t sure how to get out of credit card debt on your own, maybe now is the time to find a credit card debt relief service that will help you. We’ve reviewed the best services available today so that you can get the credit card debt help you need without spending hours and hours searching for a service. Here’s to taking to first step to reducing credit card debt. Good luck!