Credit Card Bailout - Know the Truth Before You Take Action

In Credit Cards of CreditGuru (October 29, 2024 9:57 pm)

If youare battling with credit card debt, you will have found yourself getting involved in the hype about credit card debt bailout. The bottom line is , however , that it is more about keeping a lid on the credit card firms than it is about the consumer. Limits are being put in place so that credit card firms can’t charge clients exorbitant interest rates on unpaid balances and can’t raise rates without giving the patron sufficient notice. While the bailout will not do anything without delay for you, there are a couple of things you can do for yourself.

An option available in some cases is credit card settlement. This is an option that’s available most frequently to people who owe over $10,000. Not all credit card firms offer this option and they nearly always need a20% to thirty percent payment up front. This is difficult for many borrowers to do. Some have borrowed against their homes if they have equity or used their savings. If this sounds like an option you want to consider, contact your credit card company and find out if they will do it.

If your credit card debt carries very high rates you may wish to consider asking for a reduction in the interest rate. Again, not all credit card firms will do this but the only way you will know is to ask them. These firms are tightening credit even for the best customers. Credit limits are disappearing and rates are rising.

Many people think that the only real way to work out a credit card settlement is to contact an attorney or a credit counseling company. While they can be helpful in certain situations, chances are that you can finish the same things yourself. By calling your credit card firms, and telling them honestly what your present position is, theywill regularly work with you so you can be your debt to them. In fact , they would rather get their money from you than not. They don’t need you to file bankruptcy or default totally on your payments to them.

Bankruptcy may be the only credit card bailout option for you. If you have attempted a credit card settlement or attempted to have your interest rates lower without success than itwill probably be of benefit to you to contact a credit counseling service or a lawyer to find out what your options are. It’s vital to realize , however , that bankruptcy laws have changed. In the past unsecured credit card balances were eliminated in bankruptcy proceedings. This is not longer the case. Now, new bankruptcy rules require a repayment schedule over a 5 year period with interest. The bankruptcy will stay on your record for 7 years. So it isn’t an easy rescue plan.

There are many things you can do to pay your credit card debt faster and more efficiently that may lead to gaining control of your credit card debt without taking any extreme measures. By paying additional each month on your high interest credit cards, while paying the minimum on low interest cards, youwill save yourself money. Once they are paid off and as you are able, pay extra each month on the others. Cut down on all nonessential costs,such as buying lunch, coffee, fast food and anything more you can think of. Use this money to whittle away at your credit card debt.

The base line is that there’s no simple way out of credit card debt. Paying off your debt, credit card relief, interest rate reduction and bankruptcy are your only options. Not all credit card firms will barter with their customers but if yours will this would be your preferred option over bankruptcy. You want to keep your credit intact if at all possible.

Credit card rescue was instituted to keep credit card companies from making the circumstances more difficult for the customer. It is placing caps on interest rates and insisting that consumers be informed re any changes in their rates. The best rescue for anybody with credit card debt is to stop using credit cards and to pay down the debt as quickly as possible. Pay off high interest balances first and pay more than the minimum when possible. If you’re not sure of your options with regard to bankruptcy or have other concerns a credit support service or an attorney are excellent options.

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