Credit cards are handy. If you need something–or want something–and you don’t have the cash on hand, you can charge it to your hard and get what you want right away.
Sure, until the bill comes in. If you have found yourself in a nasty cycle of credit card debt, you may try to pay the minimums, but the balance never goes down. The interest rates are generally so high that you may not be able to afford even the minimum payments.
Wouldn’t it be nice if you could get credit relief? Perhaps look into how to get credit forgiven and see if that is the right path for you. Here are a few steps to take:
Look Into Debt Settlement
One option you have before you is to look into debt settlement. You are still going to owe something, but it will likely be less than what you actually own. You will likely work with a professional and they will negotiate with the credit card companies on your behalf. They will also likely advise you to stop making payments on the cards and, instead, save the money in a separate account. When they settle your debt for a smaller amount than what you owe, you can put the saved money toward that debt and, hopefully, pay it off in one lump sum. The remaining debt would be forgiven, and you would be off the hook.
Watch Statutes Of Limitations
If you are default in your payments, and the credit card company sends collection agencies or even lawsuits after you, it’s something you might be able to beat if the statute of limitations expires. This is a risky way to go and you may be in deep water if you are still within that statute. The statutes are going to vary by state.
You won’t have your debt forgiven, necessarily, but when you look at the debt relief web site options, you will notice consolidation is one option to consider. You can place all of your credit card debt in one place. Getting a loan will allow you to cover those debts and pay off those cards. Once that is complete, you have only the monthly payment on the loan to make. That loan will likely have a lower interest rate and you will save money on the debt, in general. While your debts aren’t forgiven, they do shrink, and they are more doable for your budget.
If you have too much debt and you just can’t pay it off, you might declare bankruptcy. This is something you would want to do as a last resort as it will kill your credit for a long time. Your debt, in essence, will be wiped clean by the court and you may have to forfeit some of your possessions. You will also have a lot of clean up to do on your credit as the years go by.
If you are able to work out some kind of credit relief in terms of forgiveness, it can help you to get on the right track to dig yourself out of the hole you may feel you are in. However, even if you debt is partially or completely forgiven, that doesn’t mean you are out of the woods.
You are going to have to make spending changes in your life or you might find yourself back in trouble again sooner rather than later. When you are looking into how to get credit forgiven, make sure you understand the programs you are considering thoroughly so you don’t get trapped into something that will actually make things harder on you in the long run. Work only with reputable companies so you can trust the results you are going to get.
Palak Singhal is an English Literature Post-graduate from University of Delhi, India. She has a particular interest in writing blogs on different topics.