Many of us have got problems with credit cards and loans equally debt that cost of thousands of dollars every month and for most of it you know that there is no way that you can actually pay back. You should always try looking for something that is going to help you to reduce the credit card debt as well as getting a hold of your money again because that is important for many of us to have however. Remember however you will need all of your credit debt so that you can see how much you owe and what the interest rates are.
You should try calling the companies up firstly and tell them of your situation, that you have problems trying to pay the debt back. Tell them that you have every intention of paying the debt but you have got some problems with the cost of the payments every month.
See if there are any ways in which you could get the interest rates of payments every month lower; at least see if there is any way to stop the interest increasing and ask if there can be a zero interest option for you. This would make it much easier to get rid of the debt.
Try keeping money back for any emergencies and anything that is left over from your income and after paying the debts could be split into going into an emergency account as well as towards the debt.
You could think about a home equity loan that helps to consolidate the debt but be careful this is still a loan but the rates are lower than most other loans. There is the option of a tax deductible also unlike with credit card debt.
If everything else fails then try looking at a consolidation company so that you can get some counseling sessions to help reduce the debt and get a hold of the finances in your account. It will be wise to try looking for negotiation process with the creditors that you have so that when it comes to taking a control of your debt then you could go to the creditors informing of the situation and remember to say that you want to pay the debt back but you need a payment plan that will be reasonable for both of you so that you can pay back the debt.
If you do negotiate with the creditors and find out if you could get new conditions or terms and if so then keep to these new terms. You could change the terms from the debt and repayment plans so that both you and the creditors are happy with the payment plans.
Tips & Warnings
- Always look to keep records over any and all conversations with the credit card companies.
- Wise to keep all details of conversations so that everything can be kept as a record with you incase anything should happen.
- Remember there are a lot of scammers out there and they will be happy to charge you for their services and take off with your money without a second thought.