Credit Card Debt Counseling- A Viable Way to Fight Debt

Credit card debt counseling will help you find a solution to your growing and numerous credit card debts. It will aid you in deciding what program or service you may need in order for you to settle your obligations. You will learn through counseling the benefits and disadvantages of the different ways to resolve your financial dilemma.


The first option is debt negotiation. Debt negotiation is the quickest and most cost effective way of eliminating your debt. It is the process of negotiating the reduction of the balance of your debt with your creditors.


This program works best if you carry a substantial amount of debt, especially if you are making minimum payments.


It may reduce the principal amount of your debt up to 70% and it is the only program that directly attacks the principal amount of your debt. Some programs you will encounter promise to reduce the interest rate of your loan but do not deal with the root cause of your problem:  your principle balance not being eliminated.


Debt negotiation will only take you 2-4 years to eliminate all your debts.


Another tactic that credit card debt counseling will suggest is debt consolidation. Debt consolidation is the process of combining all your debts into one loan. This is also a viable option. Combining all your debts into one loan with lower interest and longer period of payment will be convenient for you.


Debt management is another way to settle your debts. It is like hiring a third-party collection agent to manage your debts.


They will negotiate and deal with your creditors to reduce your interest rates on your behalf. They will represent you in paying your debts to your creditors.


Debt counselors will also negotiate with your creditors to waive late fees and other penalties that were assessed. Unpaid interest may also be waived.


Credit card debt counseling will work with you to sort out all your debts. Their counselors will obtain for you a solution that will fit your budget and your over-all financial situation.


They can provide you with different options and recommendations that will help you resolve your debts. They can facilitate a detailed analysis of your financial standing to aid you decide on what program or process to take.


Credit card debt counseling can give you the best advice on how to settle your debts. They can devise a plan or two for you to study and consider. So you need careful planning to see what will best suit your needs and your capabilities.

Bankruptcy is also an option but it may be the worst decision you will ever make. Bankruptcy can ruin your chance of getting back on your feet. It will affect not only your financial credibility but also your social, emotional at psychological state.


The above options are all viable solutions that credit card debt counseling may provide.