How To Eliminate Credit Card Debt?
November 14th, 2008 | 
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No stone has been left unturned by people to find a reliable solution to eliminate credit card debt. It would have been much easier to find an easy solution if it were to be a one time problem that will remain so after solved. That is not the case with credit card debt. You have to struggle hard to solve it and struggle equally hard to stay out of debt.
People always look for magical formulae to get rid of their problems; they often get tired, frustrated and give up when they dont find instant solutions to their problem. It is all the more true in case of credit card debt. Here, the volume of the problem grows bigger and bigger until you find a suitable way to solve it.
What you have to remember is that no problem is so big or complicated that it cannot be solved; only that it requires constant effort and a systematic approach to solve them. If you apply your mind and stick to your plan rigidly you will be able to eliminate credit card debt problems.
Some of the basic factors that you need to take into consideration while trying to eliminate credit card debt are often simple. Remember that greater the number of credit cards greater the danger. You tend to over spend with multiple credit cards which you do not realize while shopping. It hits you only when you get your shocking monthly bills. So try to reduce the number of credit cards you own. Try to get rid of credit cards that have high interest rates and cards that you got because of some attractive offers. Try to channel your credit card funds by maintaining just one or two credit cards that have low interest rates.
If you are good at paying bills in time try to get credit cards that have longer grace periods so that you get more time to have your bills paid. Make sure you get updated with the latest terms and conditions of your credit card companies. This way you will save yourself from a lot of problems. Many people get into debt because they thought that they still were running under 0% interest which they got as signup offer. Be clear about the minimum payment that is expected out of each card and their interest rates if you should skip a billing cycle.
Even the worlds richest people can run into debt if they do not budget their expenses. It is a simple math that you have to perform, you cannot spend more than what you earn. If you keep to this rule you will certainly not get into trouble. However, there might be occasions whereby you may have to spend a little extra on a particular month because of some unexpected expense that cropped up. Such a situation will not push you deep into debt; only when this becomes your regular spending pattern then it becomes a problem.
Summary:
Eliminating credit card debt is not an impossible task. With little planning and adhering to that plan you can easily eliminate credit card debt. Try to maintain only one or two credit cards to reduce the risk of getting into bad debt. Use cards that will suit your need and it should not be the other way.
Posted in eliminate credit debt
Can you eliminate credit card debt by declaring bankruptcy?
Can an individual eliminate credit card debt by declaring bankruptcy? I didn't think you could wipe it out, just get the bill collectors off your back. But, someone told me that it depends on which chapter of bankruptcy you use. The right one WILL eliminate credit card debt. I know someone who has $80,000 in credit card debt and they are trying to do that to get rid of that debt! Is it really possible? Are there any restrictions in doing this. Can you ever get a credit card again if you do it?
If you file bankruptcy to eliminate all debt, do you have to give up ALL of your possessions? Will you have anything left?
This is for a friend of mine (really). They don't own a home. They have 2 cars and some furniture and A 401k plan. Between the two of them they make about $40,000 a year. I don't see how debt consolidation will help them How could they EVER pay off $80,000!?! They had a house but they used up all the equity in it over the years and sold it recently and broke even on the deal, ending up with NOTHING! What a mess! I just didn't think they could wipe out their credit card debt! And, it really isn't fair to the rest of us that pay our bills!
hey before you do that, pls be guided by this resource
References :
http://www.newhorizon.org/Info/credit-improvement-articles.htm
Bankruptcy can eliminate all debt including credit card. The court looks at your circumstances and decides whether you are eligible to file Chapter 7 or Chapter 13. In some cases, Chapter 13 pays every penny back.
Bankruptcy stays on your credit report for 10 years. It will affect all sorts of things in your future,including some jobs. You will have to pay high interest on any kind of loan. It is not an easy way to get out of your debt.
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There are a number of factors involved.
A chapter 13 is where you have to pay back some of the debt. How much depends on what your current disposable income is and how much your debts total. There is a fairly complicate formula involved. But this will stop them from filing judgments, garnishments or liens. It freezes interest and late fees. And it protect your property if you own a home or car.
A chapter 7 is called "liquidation" for a reason. You may have to give up most of your property. Therefore, if you have a lot of property along with that 80k in credit card debts, you may have trouble keeping it all.
Also, you must pass a "means test". This was put into place to prevent someone who has a very good job from filing BK and dodging their debts. If you earn (generally) over $45k a year you will not qualify for Chapter 7. Again..there is a complicated formula to figure this out.
There are a lot of bankruptcy lawyers who have a free consultation. If you think it's necessary talk your situation over with them.
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Yes, credit card debt is dischargeable in chapter 7 bankruptcy. The court will seize all your assets, liquidate them to pay off as much of the debt as possible, and discharge the rest. The only assets that are exempt are the necessities of life, such as clothes, food, a small amount of equity in your home and car, etc. And it will be very difficult to get a credit card for at least 5-10 years after bankruptcy.
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Donot go for bankruptcy it will stay on your report for another 7-10 years so be careful about it.You can consult with a debt consolidation agency but all are not good . Try to get some who are BBB online registered organisations and are member of US chamber of commerce and then apply online and get their help. They will help you to fix your credit and also relief you from the debt.
To know more you can visit
http://www.debtconsolidationmanagement.blogspot.com
and
http://www.creditcardbiz.blogspot.com
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