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Is it Finally Time to Get out of Debt?

If you want to learn how to fix credit, you are going to have to make some difficult decisions  and some of your decisions will be deciding what to do with credit card debt.

 

This type of consumer debt is the most destructive type of obligation we have. First of all , it is very easy to apply and to receive approval for a credit card. Even high interest credit cards are available and this ability to rack up debt is a flourishing,insidious disease eating away at our economic fabric .

 

Second , this debt is consuming in that it never seems to go away . Minimum payments are a welcoming committee for a lifetime of slavery as you never seem to be able to knock down the balance.You can’t ask the question how to fix my credit without a plan for dealing with this unforgiving debt.

 

If people really understood how dangerous credit card debt is, this plastic we carry in our wallet and flip out at whenever we want what we can’t afford, well, this practice should be outlawed.

 

Congress recently addressed this growing problem and although the lobbyists are incredibly powerful, this idea of credit and paying it back for years , there are a few new laws governing the banks and lenders issuing these cards.

 

Have you looked at your credit card bill lately?  Are you even outraged at the number of years it will take to pay off some of your ongoing card debt? Can you imagine paying for years for something that has long ago used up it’s life? That big screen TV that has long ago been replaced? Are you still making those payments ? How about those new appliances  you needed? Does everything still work or have you moved on to another model?

 

Paying consistently  for your credit card purchases is like throwing money down the toilet and if you are embarking on a campaign to increase my credit score, you must decide how to handle the debt that takes all your money each month. Here are some things you may want to try to do  .

 

1. Pay the debt in full . If you get inheritance money or score a windfall from some long lost investment, now is your chance to eliminate your overhead . Get out of debt .

 

2. Call the lender and ask for a lower interest rate . Tell them the alternative is that your financial situation  may prevent you from paying the balance at the rates they are charging  . If they refuse, don’t give up . Credit card companies do this all the time and why not for you?

 

3. Bankruptcy might be a consideration  , but you need legal help to determine if your obligations to the credit card companies can be discharged. Some credit card debt is exempt, so don’t run out and make a big purchase thinking you may not have to pay for them.

 

4. In extreme cases you might consider a settlement or creditcard forgiveness. This is where you pay about 20 cents on the dollar for a settlement in full. You can do this yourself and it requires some thought and a plan . There are all sorts of considerations and time lines you need to pay attention to. Be aware that you will be held liable for paying the income tax due on the amount forgiven as the IRS considers this to be taxable income .

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