Credit Card Debts

Credit card debts can cause a lot of stress and worry. But worry no more! There are now lots of ways to eliminate them for good.

Credit Card Debts

Credit card debts have a way of sneaking up on you. And if you can only afford to pay the required monthly minimum, you'll have more debt than you started.

How Credit Card Debts Happen

It sounds pretty obvious, doesn't it? But how many of us have opened our credit card bills and asked ourselves, "How did this happen?" You might have a good idea of what your balances should be, but your statement says it's a lot more. That's because if you're only paying the required monthly minimum (which used to be 2% of your balance, but is soon going up to 4%) the credit card companies tack on finance charges. And if you've had late payments or gone over the limits, you get charged fees for each incident. This can add up to hundreds of dollars over time.

How to Make Credit Card Debts Go Away

In the past, your only options when it came to credit card debts was to stay in debt or, in desperate situations, file for bankruptcy. But now, there are a number of options when to eliminate credit card debts:

1. You can enroll in a debt consolidation program, which uses negotiation to get the balances and interest rate on your credit card debts reduced. Then all your new, lower credit card debts are combined, and you make one monthly payment to your debt consolidation company instead of several monthly payments on your various credit card debts.
2. You might also opt to enroll in a debt settlement plan. This allows you to pay off your credit card debts at 30-60 cents on the dollar as long as you have enough money to pay off that new, lower amount all at once. (Some debt settlement companies will give you anywhere from 1-3 years to pay it off though.)
3. An option that a lot of homeowners take when faced with a mountain of credit card debts is a debt consolidation mortgage. This allows a homeowner to use the equity in his or her home to pay off any unsecured debt (like credit card debt). Your payment is included with your mortgage so you get the same low interest rate as your mortgage.
4. If you have collateral, you could get a debt consolidation loan to pay off your credit card debts. Then all your monthly credit card payments are replaced with the loan payment. You benefit from the low interest rate. It's so low, in fact, that you can have the loan paid off in five years or less, depending on the amount of your debt.

If any of these programs sound good to you, search our Related Resources page to find a reputable debt management company to find out which one is right for you.

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