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Credit Card Debt Help – What Are the Solutions When Falling Behind on My Payments?

Credit Card Debt HelpIf you have been delaying on your credit card payment, you should anticipate that it could be disastrous to your financial health. Not only does your credit rating become affected, it can also open the doors for additional charges to pile up to a point that you can no longer afford to pay for it. Not everyone is able to use their credit cards responsibly which brought them to their financial demise.

Falling behind paying for your credit card dues can be a disastrous scenario but you are not left without an option. Here are some possible solutions that will help you settle credit card debt problems.

Evaluate your current financial condition

Before resorting in getting help from a third party financial assistance, you should be able to assess and evaluate your current financial circumstances. It may be possible that the reason of falling behind the payment of your credit card dues is poor personal financial management. Your financial income may be sufficient enough to pay for your monthly dues, however owing to poor financial planning and budgeting you have sacrificed the amount that should have been used for paying off your credit card for other things. Personal financial re-programming can help solve your problem in this case and you can budget your money by setting aside the amount you need to cover for your credit card monthly dues and use the money exclusively for that purpose only.

Observe a personal financial management plan

Not everyone who is lagging behind the payment of their credit card debt is financially crippled. In fact, you may have sufficient income to cover for your monthly dues only you were not able to spend your money wisely. Financial advisers always emphasize the importance of personal budgeting and financial management plans in order to keep you out from getting buried in debt. If your financial income is sufficient to pay for more than the minimum amount for your credit card due, you should sacrifice minor expenses to cover up your debt to pay it faster. Thus, it is often a mistake to consider those who are lagging behind their credit card payment as financially broke. It is possible that they have enough income to pay for it but due to poor budgeting and unplanned spending, paying a credit card debt diligently becomes the least priority.

Negotiate with your credit card service provider

If your financial circumstances have changed and your income is insufficient to pay for your monthly installment, you can always negotiate with your credit card provider. It is possible to communicate your current financial condition to your credit card provider and ask for reconsideration or an amendment to your payment terms. Your goal is to be able to find the best and less burdensome monthly due to pay for your debt in order to protect yourself against the piling charges for late payment fees, higher interest rate and a bad credit rating.

Consider a debt relief program

In case you find yourself no longer in control of your finances, it is time to get help from a debt relief service. There are many options that you can choose from and your choice will always depend upon your needs and circumstances. You can get help from the following options:

1. Consider a debt settlement program

A debt settlement program is a more aggressive option to solve your credit card debt. This usually takes at least a year or two before you can finally pay off your debt. However, it will cost you a bigger amount of the monthly rate to pay for and it will depend upon your financial capacity to pay for a certain amount monthly without sacrificing your basic expenses. This form of debt relief option will allow you to pay your dues faster. However, be wary of fraudulent debt settlement companies all the time.

2. Try consolidating your credit card debts

The problem arises when you need to pay different creditors for your credit cards and you are unable to fulfill your commitment to pay every month. A debt consolidation loan can be your option if you want to deal with a single creditor only. You will be allowed to apply for a loan that will be sufficient enough to pay off your different credit card debts and you will be paying to a consolidation loan company every month with a certain amount with interest. However, the maximum amount that is usually allowed for a debt consolidation loan by the majority of financial institutions is $7,000.

3. Credit counseling

If your financial situation is can still be salvaged, you need a professional to help you. A credit counselor is someone who can work out the most appropriate financial planning that you need in order to manage your income wisely and to pay off your debts quickly and more efficiently. A credit counseling company can also work out in negotiating with your creditors to lower the interest rate for your loan. Be aware however that it will cost you a higher monthly rate because a credit counseling program usually takes only 60 months to pay off your credit card debts.

4. Declare bankruptcy

Filing a bankruptcy is usually taken as the last option because it could taint your credit rating with a bad score that could last for 10 years. However, if all options failed, you are better off declaring bankruptcy. The process however can be costly as you will need to pay for a bankruptcy lawyer. You have two options when filing bankruptcy as your last option namely filing under Chapter 7 or Chapter 13. Chapter 7 will allow the court to decide to wipe all your credit card debt while you will be given a repayment plan to pay your debt under the Chapter 13 bankruptcy.

How to handle debt collection harassment

It is common for credit card debtors who fail to pay their monthly dues regularly to receive calls from their credit card collection department. It helps to know that debtors are protected by the Federal Trade Commission (FTC) against harassment from credit card collection agencies. The FTC regulates the manner on how financial companies make a collection from their debtors and provides additional protection to the consumers. It helps to know your rights against unreasonable demands from credit card companies. In order to avoid an altercation with a debt collector, make the effort in communicating with your creditor your current financial circumstance and ask for other possible options that they can give you in order to help you unburden your monthly credit card dues and maintain your ability to pay diligently according to your financial capacity to pay them.

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