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Debt Elimination Guide
On
average, every American household is about $9,000 in credit card debts, paying
an extra $1,100 or more in interest each year. If you are reading this debt
elimination guide it’s probably too late for apply the best advice one can get:
Do your best to stay away from debts. However, as many Americans find every
day, as terrifying as it may seems, being in debts is not the end of the world.
There is a way out! If you
are in overwhelming credit card debts, there are few options available for you: Keep paying the minimums. Many credits cards now have minimum payments so low, it will take over 50 years to pay them off! However, once you take more control over your financial situation, in few years things might improve for you and once you’re up on your feet again, you’ll be able to increase payments and pay off this debt much sooner. Call your
credit card company and ask for better interest rate. You’ll be surprise by
their response: They almost always prefer to be paid less interest than having
to write-off the entire debt! If you have any savings, this
could be a good time to use that money to pay off your debts. The interest on
your debt is much higher than what you’re getting for your saving account. It
might give you a false sense of security to have that money in the bank, but
you are actually loosing money every day this way. Take a Debt Consolidation Loan, if you have good credit. In most cases the interest rate is much lower, you can spread the payments over a long period of time, but you’ll have to secure that loan with collateral. Negotiate
a Debt Settlement with your creditors to pay off the balance on your account. In most cases you can eliminate your debt in few years. Consider Debt
Counseling – Also known as consumer credit counseling service. Credit counseling services charge a monthly maintenance fee from you. They will deal and negotiate with the creditors for
you better than you’ll be able to do on your own, and save you the collection
calls. However, your credit report will have a CC mark that is hard to remove
once you are finished with their service. Whatever
the option you choose, learn from your previous mistakes that led you to this
situation in the first place. Always spend less on a daily basis and keep
control over your expenses and a balanced budget. |