| Unpaid credit card debt seems to be an unfortunate | | | | will make 1 payment each month to your credit |
| sign of our times, but there are things you can do to | | | | counseling agency and they will pay your credit card |
| help turn your financial situation around. It will take work | | | | companies. Your credit card accounts will be closed, |
| and for some, depending on their situation bankruptcy | | | | but your credit will most likely remain in tact as long as |
| may be the only answer. But there are several options | | | | you fulfill the terms of your debt management |
| that you can look into first. | | | | agreement. |
| First of all, if you are still using your credit cards--STOP. | | | | 3. Debt settlement-This option is a reduction on your |
| You are just digging the hole deeper. You have 4 | | | | credit card balances through negotiation with the |
| basic options for credit card debt relief. Here is a quick | | | | lender. You can get out of debt more quickly with this |
| overview of how they work: | | | | method than any other, but it will most likely damage |
| 1. Pay them off yourself- This takes a lot of discipline. | | | | you credit. Although, many people that use debt |
| You must stop using your credit cards. You will have | | | | negotiation already have negative credit. You can |
| to reduce your household expenses and if possible | | | | negotiate directly with your lenders, but you should be |
| increase your income. You are also going to have to | | | | prepared to pay the negotiated balances in full. There |
| be able to pay more than total minimum payments on | | | | are companies that will negotiate all of your unsecured |
| your accounts. If you are not able to do all of these | | | | outstanding balances. If you are contemplating |
| things, you may want to consider credit counseling. | | | | bankruptcy, debt settlement is a good alternative. |
| 2. Credit counseling- This is a form of debt | | | | 4. Bankruptcy-This is not the free ride that it used to |
| consolidation without a loan. Your credit counselor | | | | be. In most cases, it will be a reorganization of your |
| works with your lenders to reduce your interest rates | | | | current unsecured debts. This should be used only as |
| and eliminate your fees. You will still need to be able to | | | | a last resort. It will stay on your credit record for 7-10 |
| make about a 2 percent payment each month. You | | | | years. Bankruptcy has to be done through the courts. |