Credit Card Debt - How to Never Pay Back Credit Card Debt While Avoiding Bankruptcy
As per the Nilson Report dated April 2009, on average, the American household carries a credit card debt of about 10,600 US dollars.
The average balance for every credit card, both for bank and retail cards, was at about 1,100 US dollars according to the Experian marketing insight snapshot dated March 2009.
These numbers reflect just an overview of the trend in credit card debt as of the end of 2008.
The numbers are not pretty.
A lot of Americans are in debt, and with the current recession, most of these people will almost certainly have more difficulty in paying off their debt.
Some may even increase the amount they owe, due to job loss and pay cuts.
A handful of people may, in desperation, even resort to filing for bankruptcy - something that should be avoided, if at all possible.
Remember, there is no way of fully eliminating credit card debt.
There are a few ways, however, to improve one's finances without having to go bankrupt.
Some of the options are: oCredit Counseling and Debt Management A debtor can consult a credit counselor.
This credit counselor can help his client come up with a debt management plan.
This process is quite unlike debt settlement as it does not involve the reduction of the principal amount owed, it simply provides the debtor more manageable payment options.
oAgreements with Creditors.
As a consumer, one has the option of going into a one-on-one contractual agreement with the creditor.
This option generally involves having creditors renegotiate the debtor's repayment terms, maybe in a manner which is more affordable for the consumer.
This option is the most preferable but also the most difficult to get.
oDebt Settlement A debtor can go negotiate a debt settlement with his creditors.
This can be done by the individual himself, or through a lawyer, or a debt settlement company.
A debt settlement, if negotiated successfully, can see a significant decrease in the total debt owed.
oDebt Consolidation Debt consolidation involves taking out another loan and using that loan to pay off all the existing credit card debt.
The debt consolidation loan will mean the consumer will only have to pay off one loan in a month, with slightly lower interest rates.
There are more alternatives available.
What one needs to do prior to taking action is to consult a specialist or a debt relief counselor.
These specialists can provide helpful insight and information, and will steer a consumer towards a program that is best suited to one's particular financial situation.
The average balance for every credit card, both for bank and retail cards, was at about 1,100 US dollars according to the Experian marketing insight snapshot dated March 2009.
These numbers reflect just an overview of the trend in credit card debt as of the end of 2008.
The numbers are not pretty.
A lot of Americans are in debt, and with the current recession, most of these people will almost certainly have more difficulty in paying off their debt.
Some may even increase the amount they owe, due to job loss and pay cuts.
A handful of people may, in desperation, even resort to filing for bankruptcy - something that should be avoided, if at all possible.
Remember, there is no way of fully eliminating credit card debt.
There are a few ways, however, to improve one's finances without having to go bankrupt.
Some of the options are: oCredit Counseling and Debt Management A debtor can consult a credit counselor.
This credit counselor can help his client come up with a debt management plan.
This process is quite unlike debt settlement as it does not involve the reduction of the principal amount owed, it simply provides the debtor more manageable payment options.
oAgreements with Creditors.
As a consumer, one has the option of going into a one-on-one contractual agreement with the creditor.
This option generally involves having creditors renegotiate the debtor's repayment terms, maybe in a manner which is more affordable for the consumer.
This option is the most preferable but also the most difficult to get.
oDebt Settlement A debtor can go negotiate a debt settlement with his creditors.
This can be done by the individual himself, or through a lawyer, or a debt settlement company.
A debt settlement, if negotiated successfully, can see a significant decrease in the total debt owed.
oDebt Consolidation Debt consolidation involves taking out another loan and using that loan to pay off all the existing credit card debt.
The debt consolidation loan will mean the consumer will only have to pay off one loan in a month, with slightly lower interest rates.
There are more alternatives available.
What one needs to do prior to taking action is to consult a specialist or a debt relief counselor.
These specialists can provide helpful insight and information, and will steer a consumer towards a program that is best suited to one's particular financial situation.
