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4 Tips for When You Need Credit Card Debt Relief

Credit card debt is something that haunts many of us. You work hard and pay your bills, but sometimes life happens and you find yourself under a mountain of debt from your credit cards. When the amount owed gets to be so large, you wonder if you will ever be able to get out from under it.

Making changes in your spending habits and taking on a second job to help pay your bills are great ways to help chip away at your debt. You may also want to look into transferring your outstanding balances onto a new credit card that can offer incentives such as a lower interest rate or even a 0% introductory interest rate for the first twelve or eighteen months that you use the card. Having time to pay your balances without added interest may help you see a significant decrease in your debt.

But sometimes the amount you owe is so great that you can try everything and it still seems like your outstanding balances don’t decrease. If your debt is that high, there are other options to explore to bring you relief from your credit card debt and even improve your credit rating.

  1. Debt management plans – Often consumer credit counselors will set you up with a debt management plan wherein you pay a monthly lump sum that is divided among the credit card companies you owe. The credit counselors will negotiate with the credit card companies to lower interest rates so you can pay your debts off faster. Consumer credit counseling is a service that allows a person to pay off all debts in a quicker, easier manner.

  2. Debt consolidation loans – A debt consolidation loan is another payment option when you’re trying to get out of a debt. Taking out this type of loan can reduce your interest rates. It does, however, mean you are faced with paying off a loan (and accompanying fees) instead of your credit cards, so you are still stuck with debt.

  3. Debt settlement – Debt settlement companies negotiate lower lump sums with credit card companies in order to lower the amount you owe. As with a consumer credit counseling program, you pay off your debt with monthly lump sum payments. The difference is generally in the timeline; debt settlement companies often negotiate a payoff period of 36-48 months. It is important to remember that you are given this timeline as a last resort, and if you are unable to hold up your end of the deal, the actual creditor can likely sue you to collect on their debt. Because these plans can cause you further problems, it’s a good idea to contact an experienced law firm that will help you pick the best program for your needs.

  4. Bankruptcy – If your debt has grown too large to manage, you might want to explore filing for bankruptcy. There are two types of bankruptcy to consider: Chapter 13 and Chapter 7. A Chapter 13 bankruptcy allows a reorganization of your debts, so you’re still paying off many of them, and you’re avoiding other life-altering events like a foreclosure of your home or a wage garnishment. In Chapter 7 bankruptcy, your debt is discharged; often, your assets get liquidated in exchange for this total debt forgiveness. If you want to learn more about bankruptcy, you should speak to a bankruptcy attorney about which is the best option for you.

How the Ohio Consumer Debt Attorneys from LHA Can Help You

Financial difficulty can be a stressful and overwhelming emotional experience for anyone. You are looking for ways to escape the constant onslaught of creditors and it is understandable that you have a lot of questions. We are on your side. Get answers to your debt relief questions and concerns by contacting the Ohio consumer debt attorneys from Luftman, Heck & Associates today at (888) 726-3181 or email us at advice@ohiodebthelp.com.