Pin It

Best way to eliminate credit card debt

andybrock | Dec 29, 2010 |

0 Comments | Rating: 0

If you too much credit card debt, you are not alone. On top of having too much debt on too many cards, many people are struggling with the high interest rates that most cards come with. Therefore, if you are stuck in this situation, you have no doubt seen the advertisements claiming you can eliminate all your obligations without paying for it. Obviously, these claims sound quite good, and many people want to know if they are indeed legitimate.

The firms that make advertisements claiming to be able to eliminate credit card debt base their argument on the fact that the bank is the company that actually is on the hook for what you owe-not you. This is because they say they are technically the co-signer, since their name is on the card. Therefore, if you simply default, the creditor will go after the bank, and not you.

In addition, these same companies say there are certain laws that essentially force the bank into paying your obligations. The firms who make these advertisements of course claim that they are aware of these hidden laws, and therefore will use them to your advantage. There are, however, a couple of problems with this.

For one thing, they never say exactly what these laws are. For another thing, if it really were that easy to avoid payments, then banks would never sign their name to a card. Also, the main problem with these companies is that if they are not effective at removing your debt then they typically don't offer a refund. So, after you have paid them upfront for services to help eliminate debt, if they are unsuccessful in getting the job done, you'll be out the fees and still have the debt to deal with.

In other words, you should avoid these firms, since it is not the best way to eliminate credit card debt. Instead, if you do have lots of credit card debt, one thing you can do is simply to negotiate with the credit card company yourself. In many instances this is surprisingly effective. In many cases they will either lengthen the repayment period or reduce the total balance you owe. After all, they do want their money and in most cases be willing to work with you to come up with a solution that enables you to pay back the loan. If you are unsuccessful then you might want to hire a debt settlement company to negotiate for you, as they know the laws and generally produce much better results but they too will require some sort of fee.

At the end of the day, we are talking about a moral obligation. Unfortunately, you may have gotten yourself in trouble with debt but you should do everything in your power to pay it off. Don't take the easy route. Try to find ways to earn more money or maybe even cut the cable off while you are eliminating debt.

In closing, it is possible to eliminate credit card debt without paying for some of it. However, you will not be able to get rid of all of it, like a lot of these debt elimination companies claim. In addition, this type of activity will more than likely affect your credit report which could haunt you for years to come. Instead, the best way to get out of debt is to become more disciplined in your spending, get on a written budget that accounts for every penny and this will help you effectively reduce your debt. Lastly, if you are still having trouble consider talking to a certified professional financial planner who can guide you through the repayment process and provide the needed support.