Most of us don’t plan for it to happen but sometimes it does. We get a credit card, hoping to use it to our advantage. Instead, we find ourselves deep in credit card debts, severely disadvantaged. It could have been due to a major injury or loss of a job or quite simply, irresponsible spending habits. Regardless of the reason, we now have to face the consequences. Realistically, there is a limit to what we can afford for credit card bills monthly. Sadly, most of us cannot pay much more than the minimum payment which is just enough to cover the interest. This simply translates to us having to pay the interest for years to come, month after month, without paying off the principle. In fact, we often witness the balances increase despite making monthly payments.

What are some of your options?

1) You can do balance transfers at a lower interest rate.

• Statistics show that most people are not able to pay off the balance within the low interest period and end up in the same situation eventually.

2) You can get a debt consolidation loan.

• Credit cards debts are low-risk, unsecured debts. Debt consolidation loans are usually high-risk, secured loans (usually against your property). Therefore, if you run into further problems, you may even lose your home.
• They are usually spread over a long period of time, up to 30 years. So, you are more or less still in the same situation with added risk.
• It is also difficult to apply for one if your credit rating is not good.

3) You can file for bankruptcy.

• Your credit rating will be affected for up to 10 years.
• Public knowledge of your situation may cause embarrassment.

4) You can negotiate your credit card debts.

• The process may take up to 2 years.
• You may be able to put a stop to the harassing calls and letters.
• You may be able to cut down the number of years spent repaying.
• You may be able to cut down the amount spent on interest, late payments and other charges.
• Your credit rating will still be affected.

If you decide credit card debt negotiation is suitable for you, you have two ways to getting it done – on your own or hire a professional. Before venturing out on your own, you have to know that the credit card debt negotiation process is a long, challenging and tedious one. Creditors will try to intimidate you into accepting a less-than-perfect deal. If your debt is sold to different collection agencies, the settlement you agreed upon with one agency may not stand with another. Knowing the “right” people in the agency can help you a great deal. You must possess the skills to use appropriate negotiation strategies given the creditor you are dealing with. Most importantly, you must have the time to do this.

If you believe that you are not up to negotiating on your own, you can always hire a professional to do it for you. Do your research. Obtain appraisals of people who had previously employed the services of the professionals you wish to hire. Remember that credit card companies will prefer debt negotiation to you filing for bankruptcy. At least they will still be able to receive most payment by negotiating with you. So don’t resign to a life of debt. Find a solution suitable for you and get out of debt. It is possible.

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