Coming To Terms With Credit Card Debt

Credit card debt can have a way of sneaking up on you. Many Americans know all too well how easy it is to end up with tens of thousands of dollars in consumer debt, usually spread out over a collection of different credit cards.

There comes a point when you can no longer make the minimum payments and you’re forced to come to terms with the damage that’s been done. This assessment – taking stock of the situation – is a good first step, but then you need to come up with a plan to settle your credit card debt, once and for all.

piggy bank saving money for credit card debt

Bankruptcy As An Option

Paying back debt can be overwhelming. People often think that the only solution is filing for bankruptcy. Isn’t that what you’re supposed to do when you can’t pay it all back? While bankruptcy is an option, it can involve many adverse and long-lasting effects. Keep in mind the following:

  • First and foremost, it will be a disfiguring mark on your credit report, for up to a decade.
  • You will probably need to seek out the help of a lawyer, who will definitely be sending you a bill for their services, including reimbursement for filing fees.
  • All of your finances – liabilities, assets, income, etc. – are reviewed by the court.
  • There are certain debts that cannot be discharged, including most student loans.
  • All of your financial dirty laundry is out in the open for everyone to see.
  • The court has to approve any repayment plans.
  • The trustee can even go after transfers of money or property made to family members within one year before you filed for bankruptcy.

In sum, it can be a time-consuming, stressful, embarrassing and expensive process. The Federal Trade Commission warns that filing for bankruptcy “can hinder your ability to get credit, a job, insurance, or even a place to live.”

Debt Can Be Negotiated

Most people struggling with credit card debt don’t realize there are alternatives to bankruptcy, and they don’t stop to question whether the amount they owe is set in stone. Newsflash: negotiating credit card debt is possible!

The problem is that the average person simply doesn’t know how to settle credit card debt with companies who are happily charging them hundreds of dollars in interest every month. They just don’t know where to start. The stack of credit card statements with big numbers is daunting, and we all know how difficult it is to reach an actual person through the complex gatekeeping of automated phone systems.

Even if you are able to reach someone, it’s usually a lower-echelon operator with no real power to do anything besides accepting your payments. Isn’t that really the last thing you want to deal with when you’re already stressed out about your credit card debt?

rotary telephones used to reach credit card companies

Debt Settlement Companies Can Negotiate For You

Debt settlement companies like CuraDebt provide an alternative to filing for bankruptcy or trying to get out of debt on your own. Debt settlement involves repaying a reduced amount of your current debt, as agreed to by the creditor, and having the account regarded as “paid in full.”

Instead of handling these negotiations yourself, everything is handed over to a company who specializes in providing relief from credit card debt. These companies know how to talk to the creditors and convince them to settle your debt at a reduced rate.

Filing For Bankruptcy vs Using A Debt Settlement Company

There are some similarities between filing for bankruptcy and using a debt settlement company, and some big differences. For example, there are fees involved with each.

Your credit will be affected whether you file for bankruptcy or use a debt settlement company.  The bankruptcy filing will be a negative mark that may stay on your credit score for seven to ten years (depending on whether you file Chapter 13 or Chapter 7 bankruptcy).  Debt settlements should improve your creditworthiness.  Too many outstanding balances will negatively affect your creditworthiness, because you’re unlikely to be approved for any new loans.  However, as your balances are resolved through debt settlement, your creditworthiness should steadily increase.

One issue with debt settlement companies is making sure that they are a reputable business and not a scam. You can be sure to avoid these issues with CuraDebt, just do a little research into our company to learn about our experience, rankings, and reviews.

The CuraDebt Debt Negotiation Process

CuraDebt offers a variety of integrated debt relief, settlement, and negotiation services. Our first step in the Debt Negotiation Process is providing you with a free counseling session.

The debt settlement process is tailored to your unique situation.  We help you figure out how much of your income can be allocated towards paying off debt.  All you need to do is set aside an-agreed upon amount of money each month.

Starting with a lump sum amount speeds up the process, but is not necessary.  You can just make monthly contributions towards your payoff account.  CuraDebt saves your money to offer a single large payment to each creditor.
You can see just how different the repayment plans are by looking through a few of our actual debt settlement letters. There are lump sum payments or some settlements are done through smaller payments spread out over time.  We resolve all of your accounts through negotiations with the creditors, using the funds in your account, and obtain your approval for final settlements.  There are plenty of options, which allow CuraDebt to negotiate a plan that’s perfect for you.

Time For A Plan

Credit card debt is never going to go away if you don’t take some action to fix your financial problems. It’s time to stop being ashamed, because there are plenty of others who are in debt too.

What you need is a plan to finally settle your credit card debt. Make sure to investigate all of your options when formulating that plan, because you might not need to take the extreme route of bankruptcy. You may be able to benefit from the personalized assistance of a debt and tax relief company like CuraDebt.

CuraDebt has over 15 years of proven experience, and we’ll help reach a solution to your debt problems so that you can live with the peace of mind you deserve. Call our expert and experienced counselors at 877-850-3328.

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