Find out more on Debt Consolidation Credit Counseling In Phoenix Now!
Sunday, December 21, 2008
What if you've tried to make a budget to pay off your cards, but the money to pay them off just isn't there? Well, you have a few options.
*It may be time search for additional employment. You need to increase your income. Try taking on a second job or maybe you can try to look for a higher paying job. Just be sure that the extra money you make is used to pay off the debt to you have accumulated. This can really lighten the strain on your budget.
*When you show a willingness to pay many creditors are ready to work with you. Call your credit card companies and see if they will negotiate a lower monthly payment or bring down your interest a bit. You could even try to negotiate a reduction in your overall balance, however you may find this difficult to accomplish without legal representation.
*Debt consolidation can make debt more manageable. If you are a homeowner consider a home equity loan to turn your multiple payments into one payment with lower interest. Remember, though, that this is a serious decision to be thought out carefully because this loan will be secured by your home.
You may also pay more in interest than you realize, because even though the interest rate is lower, you will be paying for a longer time. If you choose this route, paying more than the minimum payment each month will save you money.
If you do not want to put your home at risk you might try applying for a new credit card with a high limit and low rate. Then you can transfer the balances of your cards to this one card and reduce your monthly expenditures.
Once you have consolidated your debt you have to be careful not to begin charging things again and run the credit card balances back up. You will be in worse shape than you were in the beginning.
*As a last resort Bankruptcy is an option. If you file Chapter 7 you will be completely debt free. However, you may have to sacrifice some of your belongings. If you file Chapter 13 you will have a payment plan structured by the courts to pay your debts off. Either way this will forever show on your public record and you will have a blemish on your credit report for the next 7 years. That is why this should be your last resort.
*It may be time search for additional employment. You need to increase your income. Try taking on a second job or maybe you can try to look for a higher paying job. Just be sure that the extra money you make is used to pay off the debt to you have accumulated. This can really lighten the strain on your budget.
*When you show a willingness to pay many creditors are ready to work with you. Call your credit card companies and see if they will negotiate a lower monthly payment or bring down your interest a bit. You could even try to negotiate a reduction in your overall balance, however you may find this difficult to accomplish without legal representation.
*Debt consolidation can make debt more manageable. If you are a homeowner consider a home equity loan to turn your multiple payments into one payment with lower interest. Remember, though, that this is a serious decision to be thought out carefully because this loan will be secured by your home.
You may also pay more in interest than you realize, because even though the interest rate is lower, you will be paying for a longer time. If you choose this route, paying more than the minimum payment each month will save you money.
If you do not want to put your home at risk you might try applying for a new credit card with a high limit and low rate. Then you can transfer the balances of your cards to this one card and reduce your monthly expenditures.
Once you have consolidated your debt you have to be careful not to begin charging things again and run the credit card balances back up. You will be in worse shape than you were in the beginning.
*As a last resort Bankruptcy is an option. If you file Chapter 7 you will be completely debt free. However, you may have to sacrifice some of your belongings. If you file Chapter 13 you will have a payment plan structured by the courts to pay your debts off. Either way this will forever show on your public record and you will have a blemish on your credit report for the next 7 years. That is why this should be your last resort.
About the Author:
Are debt consolidation non profit services the best way to handle consolidation? Not always. Get the full story on the Inside Debt Consolidation website
posted by Credit Counseling at
9:33 AM
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