Dealing with your credit card debt

By Joe Sellers

If you are reading this then chances are you are one of the millions of Americans that are overwhelmed with credit card debt and feel like it is a never ending battle with no end in sight. While you continue to pay the minimum payments month after month your principle balance never seems to go down.

This is because of the way your creditors have it structured and if you continue paying the minimum payments it will take you 30 or more years to pay off your debt and that means you will have paid your debt a couple of times over. Now this is hard enough with one credit card so if you have multiple cards it can be even more of a nightmare to deal with.

With the problems we are having with the economy right now we are really starting to watch how we spend our money. Unfortunately for a lot of Americans that have lost their jobs paying off their credit cards is not top on the list of priorities but is still something that needs to be taken care of.

I mean really you are not going to pay the credit cards before you put food on the table for you and your family, are you? Of course you are not but you need to figure out another option to keep from falling to far behind. The longer you put it off the harder it becomes to get back on track.

You need to figure out what you want to accomplish and what is going to be in your best interest. The good news is you do have options the bad news is they are limited. I will go over them with you now.

1. The first option is to do exactly what the credit card companies are telling you to do. You can continue to pay the minimum payments every month and wait for them to raise the APR% (annual percent rating) on you if they haven’t already done so. This could very well leave you having to pay them double or even triple the amount for your monthly minimum payments.

2. You can go on a consumer credit counseling program. This will allow you to pay the credit counseling agency one lump sum payment every month and they will disperse it to your creditors for you. They will lower the interest a little bit but you will still end up paying back 115% or more of the balance. Also a very high number of people don’t complete consumer credit counseling because of the way it is structured.

3. There is always bankruptcy but because of so many people abusing it in the past the banks fought to have the laws changed. Now it is harder for the people to file bankruptcy that really need it. Not only is it on your credit report for 8-10 years you will always have to answer yes to the question about bankruptcy on any important applications or documents. So this does have a longer lasting effect on your credit then most people realize.

4. Or you can try to settle your debt through debt negotiations. A well structured credit card debt settlement program can make all the difference when you are looking to pay off your cards and get rid of the debt. Do understand though this is not for everyone because it will have an effect on your credit. If you are at a point where you can no longer afford to pay the minimum payments but still want to pay off your balance then this might be for you.

5. Last but is definitely least is to do nothing. That’s right, just sit back and pay nothing. Who cares if you keep falling further behind and deeper in debt? Hopefully you do. This is really not what you should do because things will only get worse and it will be that much harder to get out of debt and back on track.

When and if you are ready to look into a debt negotiations program make sure you are comfortable with the person and program that they offer. A growing number of credit counseling and debt settlement companies are popping up all over the U.S. and are rapidly giving this industry a bad name. It is all too often that people are taken by fast talking sales people that are only concerned with getting you on a program as quick as possible.

They tell you all the things you want to hear and sell you on an easy fix. Nothing about your situation is easy and should not be taken lightly. The decision you make today will affect you tomorrow so don’t be afraid to ask any questions you can think of. So make sure you do everything in your power to research any credit card debt settlement companies and credit counseling companies with the BBB (Better Business Bureau).

Another thing about 70% or more of the companies you see on TV, the internet or hear on the radio most likely will not the debt settlement company you will be working with. They are lead brokers that sell all of your info to 3 or more other companies and if you have filled out a lot of applications online then you have probably had it happen to you.  Just make sure to read all of the information on their site to prevent this from happening.