CREDIT CARD DEBT RELIEF

Your Debt Choices

Get help with your credit card debt with free credit counseling, debt management and a consolidated monthly payment at lower interest rates.

Debt Relief Help

Credit Counseling

Certified credit counselors provide free budget and credit counseling that can help you get a handle on your debt. Credit counseling is confidential and will not impact your credit score.

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Debt Management

A Debt Management Program can help you qualify for lower interest rates and a consolidated monthly payment, so that you can pay off your debt in three to five years.

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Debt Consolidation

Debt consolidation provides debt relief by consolidating your loans into one. A good debt consolidation loan will have a lower interest rate, saving you money so you can pay them down faster.

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Planning & strategy lead the way.

How To Get Out of Credit Card Debt

Credit card debt relief options can be a confusing subject, especially when you’re heavily into it, which most Americans are.

One of the few bright sides of the U.S. economy during the COVID-19 pandemic was that total consumer credit – debt incurred for purchasing goods or services – slowed some. It didn’t stop … it slowed.

Consumer credit peaked at $4.2 trillion in February 2020, then dipped $100 billion or so for the next three months, before climbing back to $4.2 trillion by November.

Nearly $800 billion of that debt is on credit cards where 40% of America’s 129 million households carry a balance month-over-month.

When that balance becomes overwhelming, credit card consolidation companies offer ways to reduce and eventually eliminate that debt, but you should be educated on your options before choosing one.

Lower your interests rates on your overall debt.

Credit Balance Transfer

You move your debt to a new credit card offering a lower interest rate, sometimes as low as 0% for up to 18 months.

Pros:

No interest means every payment reduces the balance owed.
You can consolidate all your credit cards into one payment.
If you are aggressive with this option, you could eliminate credit card debt quickly.

Cons:

You need a good credit score – preferably above 680 – to qualify.
When the introductory period ends (usually 12-18 months), you will pay standard interest rates on the remaining balance, possibly higher interest rate than you had with the card you abandoned.

There are many solutions to today’s debt situations.

Financial Help For Widows & Elderly

If you have recently lost a spouse and their income, you may be in need of fast financial relief. Financial help for widows comes in many forms including, including hardship programs that may be available from your creditors and mortgage company. Additionally, you can find out if you qualify for social security benefits from your deceased spouse. If you’re having trouble keeping up, check out our article on what to do when you can’t pay your bills.

Nearly a quarter of America’s senior citizens don’t have retirement or personal savings. At the same time, they are suffering from record debt levels including credit card debt, student loan debt and housing debt. The good news is that there are numerous resources that offer financial help for senior citizens, especially related to credit card debt, finding employment, food assistance, legal and housing help.

It may work best for you to consolidate.

Credit Card Consolidation

Credit card debt consolidation companies can help you by paying off all of your credit card debt and leaving you with a single loan to pay off. The key is getting beneficial credit consolidation loan terms (i.e. low-interest rate) that save you money.

Pros:

Instead of dealing with bills from each credit card, you have one monthly payment.
Your financial burden is eased because of lower interest rates.
Your monthly payment should be lower, giving you the chance to pay off the debt quicker.

Cons:

If you use your house or other assets to secure the loan, you could lose them if you default on payments.
If the interest rate isn’t low enough and/or the pay-off time is excessive, you might end up with more debt than when you started.
Time to repay: It varies, but most debt-consolidation loans are for 36-to-60 months.

Though typically not ideal it may be the best choice for you.

Debt Settlement

This is a radical remedy, recommended only if your credit card headache is migraine caliber and all but incurable.

You stop paying your credit card bills while a company tries to negotiate a reduced settlement with creditors on your behalf. You pay the company the negotiated amount, either in a lump sum or monthly payments that build up to a lump-sum payment. It distributes that money to your creditors.

Pros:

Your debt can be drastically reduced, sometimes as much as 50%.
You make one payment a month instead of many.

Cons:

Accounts usually need to be three to four months delinquent before creditors will negotiate a reduced payment.
Debt settlement stays on your credit score for seven years.
Time to repay: Typically, two to four years.