How to Get Credit Card Debt Relief
Credit cards can be a convenient and useful method of paying for your expenses. You don’t have to carry cash around and you generally have a few weeks after the statement date to pay off the amount owing. In addition because you have a record of your payments this should help you to maintain and control your household budget.
But as we all know, we are sometimes tempted to spend more than we have available to satisfy our need for some product or service believing that we will pay it off over the next few months. Sometimes we can’t control the reasons for not being able to pay off the debt, like a sudden loss of your job, or a large expense for an unexpected emergency. But if we don’t pay off the full balance every month, then we start to incur interest charges which can be as high as 29%.
It is at this point that your credit card debts can start to become unmanageable. It is a lot easier to get a new credit card than it is to carefully manage your expenses.
Dealing with Unmanageable Credit Card Debts and how to find a relief from them.
How to get rid of credit card debt?
You have the following options to deal with your credit card debt:
Stop using your card immediately
Iis the first step to eliminate credit card debt. This will ensure that you will only spend what cash you have on hand and prevent you from increasing the amount owing on the cards and future interest charges. This plan will only be effective if, at the same time, you can put aside enough money to pay off the existing debt. For this you may need assistance in creating and managing your budget and there are firms that offer this.
It may be possible for you to get a new loan from a finance company that has a lower rate of interest than your existing credit card loans. Using this new loan, you will pay off your existing credit card debts. This will primarily reduce your interest rate charges going forward and the total amount of your debt remains the same. Getting a new loan with a lower interest rate will be dependent on your credit score. If your score has been negatively impacted by some past issues related to non payment or part payment, then it may be difficult to get a new loan. This option will reduce credit card debt but not with the same results as next option.
A consumer proposal
This may be the best way to pay off credit card debt. If it appears that you will be unable to pay off your debts in a reasonable period of time based on your specific circumstances, then a consumer proposal may be the right solution for you. Simply put, a consumer proposal is a formal offer to ALL of your creditors, by which you offer to pay them a potion of what is outstanding, over a period of time, in full settlement of all the debts. This can be as low as 30 cents on the dollar. It has the advantages of not having to go bankrupt, paying over a period of up to 5 years and allows you to begin rebuilding your finances. See consumer proposal with A.Farber for more details
Using the services of a credit counsellor, they will help you develop a repayment plan to pay off 100% of what you owe over a period of time. Whether this is workable or not will be dependent on your specific situation: the counselor will work with you to prepare a budget that reduces your monthly living expenses and frees up enough money to repay your creditors in full.
If your partner or spouse has co-signed on your credit cards, they are legally obligated to repay the debt in full if you are not able to do so. When planning how to deal with your credit card debt you should take this factor into account.
A.Farber is here to help you to get out of debt and to pay off credit card
How to get rid of credit card debt
If you would like to advice on how to deal with your credit card debts you may take advantage of a free consultation with a licensed Consumer Proposal Administrator such as A Farber & Partners.
We are obliged by law to review all of your options with you and recommend a solution that fits your circumstances.