Credit Card Debt Essentials

How to Get Out of Debt Honestly and Safely; Your Options

Regardless of your life situation, one of the most distressing factors is credit card debt. It can be like a ball and chain. Studies have shown that credit card debt, unlike other types, causes the most stress. Long after the pleasures of your purchases have worn off all you have left is to pay the bill.

Fortunately, there are ways to effectively deal with credit card debt. These methods have been tried and proven to eliminate the burden. They will set you on a whole new path towards financial freedom.

The first step you should take to get out of debt is to work with a trained credit counsellor. S/he will provide you with information on the best ways to eliminate your credit card debt. It is important to note not all credit card debt is the same, just as all debtors are not the same. As a result, solutions for debt problems can vary widely. With a trained credit counsellor, you will learn about all the options available to you to relieve your debt.

Next, nearly all credit counsellors will recommend you stop using your credit cards. There is no sense in making a bad situation worse. Then they will advise you to transfer all of your existing credit card debt to those cards with the lowest rates of interest, and close the remaining accounts.

Making the calls or writing the letters to close your now-zero balance accounts is an important step for you to take. After all, credit card companies are in business to make money too. They may plead with you to keep your accounts open, often going as far as dramatically slashing the interest rates they charge you. Resist the urge to accept their offers. Your goal is to eliminate your debt, not be convinced otherwise.

Furthermore, a trained credit counsellor can help by establishing a repayment schedule manageable for you and also satisfy your creditors. It is important to remember that keeping with this repayment schedule will put you on an entirely new and fresh footing with the credit card companies.

There are generally 5 ways to solve debt problems, including debt consolidation, debt settlement or a consumer proposal, and bankruptcy. Using the services of a trained credit counsellor and following their advice will help you to enjoy a whole new financial future without the burden of debt.

At Consolidated Credit Counseling Services of Canada, we will explain your credit options and help you to:

• Lower interest rates
• Consolidate bills to one payment
• Stop collection calls
• Avoid bankruptcy