CREDIT CARD DEBT SOLUTIONS

Is your credit card debt out of control? Things might not be as bad as you think. You need to get a grip and pay down that debt, then take your life back.

Understanding the options available to you

Credit Card Debt Solutions

When you’re in credit card debt, the shadow of that debt affects everything that you do. Minimum payments eat up money that you might otherwise spend on buying lunch at work. You clear off some money on the card only to charge an everyday expense such as groceries or gas. You fret, worry, budget, and struggle while living from check to check, working side gigs, and maybe even using payday loans to get by from week to week. You need credit card debt solutions that will work for you, are realistic and doable, and will get you out from under the shadow of debt.

How can you tell when you are in severe credit card debt?

Signs That Your Are in Severe Credit Card Debt

Credit card debt has been hitting record highs not seen since the days of the recession. How can you tell when you are in severe credit card debt? There are some specific signs that should tell you it’s time to assess your financial condition, make a list of your debts, and then figure out how to pay them down. You know that you need help if-

  • If a credit card company has won a judgment and is about to garnish your wages.

  • If you are making minimum payments, and have no funds left over for everyday expenses.

  • If you are struggling to pay your rent or mortgage because of your credit card debt.

  • If you have one or more accounts in collections.

  • If your credit score has dropped due to high utilization of your credit line.

  • If your creditors have substantially reduced the amount of credit that they previously extended to you.

  • If you are using payday loans to make it through your pay cycle.

  • If you have consolidated debts under a loan or if you have done a balance transfer and maxed out those cards again.

  • If an unexpected expense of more than $500 would imperil your stability and ability to stay housed, fed, and keep the lights on.

All of the signs above are signs of serious financial trouble, but the trouble is not insurmountable.

Credit card debt solutions are not out of reach for anyone.

What to Do?

Credit card debt solutions are not out of reach for anyone. It takes some hard work, some tricky budgeting, and sometimes some legal help. The first step that you can take is getting organized. This means gathering all of your debt related paperwork in one place, then sitting down and figuring out each debt, the interest rate that you’re paying, and the minimum payment that you are making. After that, sit down with your bills and rent, secured debt such as automobile loans, medical bills, and any student debt that you are also paying. Next, stack all of these “must pay” items against your monthly income. After that you have a whole list of things you should not that instead of making things better, could very well make things worse.

Don't let the panic and stress goat you into doing something that you really shouldn't do

Chad Van Horn’s List of Big Don’t Do That!

Your stressed and you want your life back. Want to have some money in your pocket, and to feel some sort of financial security. This is 100 percent understandable, but don’t let that panic and stress goad you into doing something that you really shouldn’t do.

  • Don’t pull money from your retirement accounts to pay off your debt. Many retirement accounts have significant financial penalties for withdrawing funds before you retire. This may pay down the debt, but it could cost you a lot more in the future.

  • Don’t borrow against your home equity. This could put your home in danger. Credit card debt is an unsecured debt that can be wiped out in bankruptcy, your mortgage is a secured debt and borrowing against that equity is financial suicide.

  • Borrowing against retirement accounts is also a bad idea. If you should lose your job, those loans could turn into withdrawals and land you with sizable penalties, and even a bigger tax bill.

  • Consolidation loans should be considered very carefully. There are often fees associated with these loans that should be disclosed before you sign anything. Additionally, while you wipe out your dad, you assume a larger balance and frequently a higher interest rate.

  • If you are receiving collections calls, do not be pressured into paying them or agreeing to a payment plan that you know you can’t make. Additionally, do not off a payment on a secured debt such as a home or automobile in order to pay a collections agency. You could be losing the home or car to pay an unsecured credit card debt.

  • When your credit is tanked, it can be tempting to take advantage of so-called “credit repair.” These companies often promise to remove bad credit information from your Experian, Trans Union, and Equifax credit reports. These companies charge a fee upfront, and they range from outright scammers to people who can get you charged with a federal crime.

  • Do not try to file for bankruptcy by yourself or use someone who advertises their services as a “bankruptcy preparer.” Bankruptcy is also a highly complex legal procedure that should not be left to a DIY kit with a bare-bones instruction. If you need legal advice, and you will, then it is best to have periods bankruptcy attorney on your side to make sure that your bankruptcy is not dismissed.

Our free initial consultation can help you to understand your complete debt picture and show you ways to cope with your debt.

CONTACT AN ATTORNEY AT VAN HORN LAW GROUP

Just because Van Horn Law Group has a reputation as one of the best bankruptcy firms around doesn’t mean that everyone who walks through the door to go there. We have lots of experience in helping people get out of, and we want to help you find your best credit card debt solutions.

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