The Best Ways To Get Out Of A Vicious Debt Cycle
Posted on: 1 December 2017
Are you dealing with a vicious circle of paying the monthly minimums on all of your credit cards? Despite making payments, those monthly minimums may continue to increase due to the interest rate for each card. When you add up all the minimum amounts you're paying each month, the total may be well into the hundreds. If this is a vicious circle you can't seem to get out of, you're not alone, but help is available. There are several options to consider when you're dealing with too much debt.
Contact the Credit Companies Directly
One of the first things you can do is contact the credit companies directly. It may seem frightening and you may be a bit nervous about contacting them, but most of the credit companies are willing to help. During your phone call conversation, try to find out if the credit company would be willing to settle for less than what you currently owe. Sometimes companies will come up with a settlement amount to ensure they're at least getting back some of the money owed to them.
Don't be nervous about the situation. The credit companies want to get their money, so they're more inclined to work with you instead of against you. If you can settle with the different companies, it might be easier for you to pay off your debt because you'll owe a lot less than you originally did.
Consider a Debt Management Plan
A debt management plan is a solution to consider if you don't want to call your creditors and would prefer to get some help with paying back your debt. There are companies that provide this service to those who feel like they're in over their heads because of all their debt. They may help you set up a plan to pay off what you owe while focusing on settling with the creditors for you. If you're feeling stressed and anxious about the situation, having help with the settlement process may be worth it.
File For Bankruptcy
If you have too much debt and you can't afford to make payments on a debt management plan because the amount you owe is simply too high, filing for bankruptcy could be the best solution. Although it leaves a mark on your credit report for up to seven years, it's a way to erase most or all of your debt and eliminate the stress of trying to make minimum payments all the time. If it's something you're considering, make sure to contact a bankruptcy lawyer to ask for advice and get help with filing the right chapter based on your situation.
Many people have debt. There are different ways to deal with it. You could try to call creditors yourself to settle with them and save money. You may want to consider a debt management plan. And, if the situation is too extreme, talking about your financial situation to a bankruptcy lawyer while choosing to file for bankruptcy may be the best decision for you to make. Click here for more info about bankruptcy.Share