Legally Eliminate Credit Card Debt

A person can legally eliminate credit card debt through a number of different means, each having its own set of pros and cons. For the cardholder that is drowning in debt and unable to remain current with all monthly obligations, it can feel like the homeowner who must move to the attic to escape the rising water. But the water keeps rising and then where does one go except to default which is never a good idea or eliminate charge accounts through a well planned strategy? If the reader is in this position now, know that seventy percent of all Americans live paycheck to paycheck and are devoid of any appreciable amount of savings. High borrowing practices has brought on such a situation and each debtor must squarely face the debt with resolve. Here are some ways anyone can legally eliminate credit card debt.

A person can legally eliminate credit card debt at least in part by paying it down. The screams are already being heard because if a person could pay it down they would, right? Okay, try this on for size: think about getting a second job and using that money strictly for the debt. When extra money is placed directly on the principle of any obligation, the principle can begin to shrink dramatically. Deliver pizza, flip burgers, mow lawns and other creative means to make money in the evening or at non-work times will make difference quickly, but be sure to be committed to paying down debt and not spending it buying pizzas or burgers. Another fast action way to pare down borrowing obligations is through parting with stuff. Sell that motorcycle, tell that bass boat bye-bye, take all those clothes to a consignment shop, part with house decorations, give up a few pieces of furniture and sell some power tools.

Look, no one said that to legally eliminate credit card debt the effort would be easy and painless. Frankly, the rest of the ways to dissolve charge account loans don't involve sweat and tears, but they will drain your wallet of its lifeblood. Consider the big one: chapter 7 or chapter 13 bankruptcy. Chapter 7 is the lawful walk away move. In exchange for losing most possessions and ten future years of getting any decent loan or maybe any loan at all, a person can tank charge card obligations if the card holder is at or below state minimum income levels. Chapter 13 is the "I want to pay my charge card debts but I want to pay them on favorable terms for me" legal proceeding. This filing spreads out owed money over a longer period, actually lowering the month to month obligation amounts, but in both cases, a financial reputation is wiped out for ten years leaving only stratospheric interest rate loans or none at all.

While financial experts do not recommend borrowing money to cover borrowed money, if the move is to secure a home equity line of borrowing the idea does have some merit. A home equity loan from a bank or credit union can offer excellent APR rates that are significantly under plastic charge rates. If a person can secure such a loan, the possibility of cutting one's monthly plastic charge obligations in half are realistic. But the lizard in the ointment is that if a person already has high charge account obligations plus any other borrowing obligations, the chances of getting a low interest home equity loan are very low. And if one must head to a loan company to get a home equity lending agreement, the chances of having to pay very high interest rates are, let's just say, at least as great as the sun coming up tomorrow morning. Any plan to legally eliminate credit card debt does have its prickly sides.

Any of the above ways to legally eliminate credit card debt, be it through a loan or through legal action presents an extremely dangerous temptation. In many cases, it is through undisciplined money management that a person gets into high debt situations. And if such a person remains undisciplined after receiving bankruptcy relief or getting a loan to cover the charge card debts, too often the same person is back in trouble again within a few years with more of the same money mismanagement. Jesus warned against being too enamored with possessions. "Lay not up for yourselves treasures upon earth where moth and rust doth corrupt and where thieves beak through and steal." (Matthew 6:19)

The most popular way to legally eliminate credit card debt is through the use of one of the hundreds of online or local credit counseling agencies or companies. These companies have developed a long term relationship with charge card lenders which enable distressed card holders to have all unsecured loan interest to be greatly lowered, effectively cutting one's monthly payments by at least forty percent. Uh-oh, the Ice Man cometh. Such a service provides a person a way to get out of debt within five years in most cases, but most users don't stay with the program and the trouble begins again, this time ramped up with ferocity. With effectively getting a forty percent raise a month, many borrowers go against the program policies and open new accounts or spend the extra money on non essential items, revving up the monthly budget crisis again.

To successfully and legally eliminate credit card debt means that a person really must be at peace with the present state he is in. The availability of borrowed money means that someone can have that which he cannot truly afford and thereby temporarily assuaging some longing or envy pang. Until the ability to say no to the barrage of advertising that stirs up class envy is culled, the serious problem of American credit card debt will not go away. Be at rest with whom and where one is. Contentment is one of the roads to the peace God longs for all to experience.

Legally Eliminate Credit Card Debts

People can legally eliminate credit card debt and stop living from paycheck to paycheck by discovering one of the many legal methods of getting financial help. There are various programs of financial repayment, consolidation, or reduction out there for debtors to choose. It is possible to legally eliminate credit card debts by using the services of a professional debt negotiator, a debt consolidating company, or a lawyer that specializes in debt reduction or bankruptcy.

Debtors need to start the process of erasing their charge account bills by first coming to grips with the fact that their spending has surpassed their income. The debtor can no longer keep up with the minimal charge account established monthly payments. The good news is they can legally eliminate credit card debt by using an established company that will direct financial progress by scheduling repayments with creditors and by negotiating for a reduction of balances. The debtor is often given an educational component by the financial counselor which includes instruction in financial management and becoming and staying debt-free. The idea to legally eliminate credit card debts is a first step toward changing one's life and attitude toward money.

Consolidating bills into one monthly payment from many is one solution to the problem of due charge account balances. To legally eliminate credit card debts through consolidation or some other legal means is to eliminate those annoying telephone calls during dinner or at eight o'clock on Saturday morning. People who work at eliminating their bills are deciding to take a stand for financial freedom and their future. The plan to erase due balances is the plan that allows individuals to begin a new level of fiscal responsibility that will pay dividends in the retirement years by providing fiscal solvency and peace of mind.

Deuteronomy 1:13 in the Bible says that wise men with understanding shall be rulers. When people legally eliminate credit card debt, they are showing wisdom by taking the financial situation in hand and working at getting rid of the overspending problem. The idea to legally eliminate credit card debts shows one has an understanding of fiscal soundness and the value of living debt-free. These people should look for support from their family and friends and pray that God's patience and wisdom be upon them. It will take a long time and can be a slow process, but the effort will be worthwhile when the debtor is set free.

It is possible to legally eliminate debts through many relief options available today with the help of legally accountable and reputable sources. Approved business sources can provide the know-how to keep a consumer within the law and provide creative ways to legally eliminate debt or drastically reduce financial obligations. It is important to be assured that a professional uses ethical practices both personally and professionally. Finding a service that is ethical and good may take some work, but will be well worth the effort.

Consolidation, negotiation, and reduction of financial obligations are only a few of the many options that consumers have to choose from. These can all be useful when seeking a way to legally eliminate debts. Even bankruptcy is a legal answer, providing the individual fits certain criteria established by their state according to bankruptcy law. However, unless it is absolutely impossible to manage obligations through any other means, bankruptcy is the last option to legally eliminate debt that any consumer would want to take. Bankruptcy criteria are even more difficult to meet in some states now because of recent state laws.

If at all possible, quick answers should be sought. It is always best to find a way to legally eliminate debt before the threat of bankruptcy or collection suits become eminent. Most financial services that are members of the Better Business Bureau have the credibility to advise individuals through their financial management options. One financial option that is very attractive is negotiation or settlement of financial burdens. The legality has been questioned by some who misunderstand the basis for debt settlement that satisfies lenders with huge percentages below the original amount owed by consumers. In fact, settlements are a way to legally eliminate debts allowable by law because settlements are merely a renegotiation of an original creditor/consumer contract and agreed upon by all.

There may be consequences with some choices to eliminate or relieve financial obligations. Settlements by no means provide a way to legally eliminate debt obligations with no repercussions. By law, even the reduced percentage of the settlement accomplished by a financial program to legally eliminate debts must be disclosed to the IRS. The consumer will be taxed on the saved amount even though there can be some huge, overall savings through settlements. All that glitters is not gold, as the saying goes, because a settlement does not repair credit or offer a consequence-free solution to the consumers efforts. While determining the best way to eliminate debt through any source, the individual must remember to check for all business credentials and licenses to be certain the business is completely legit. "That we henceforth be no more children, tossed to and fro, and carried about with every wind of doctrine, by the sleight of men, and cunning craftiness, whereby they lie in wait to deceive" (Ephesians 4:14).

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