Eliminate Credit Card Debt Without Paying
This happens with even the best of us! We spend inordinately upon our credit cards without thinking for a second and when at the end of the month we receive our statement, we feel like running away to some secluded island. What if you could just forget all about your credit card debt and hope your lender does the same? Unfortunately, this is real world and here wishful thinking is just that...wishful! You cannot, in your right mind, think about vanishing away without paying your credit card debt and hope to continue with your normal life. But then, does that mean, you have no way of coming out of your credit card debt? Sure you do. There are certainly some ways that enable you to legally eliminate credit card debt without paying it in full amount. We will discuss these debt solutions later in this article, but before that let me make you aware of the consequences of not paying credit card debt.
Is it a Good Idea to Eliminate Credit Card Debt Without Repayment?
Everyone has his own way of dealing with credit card debt. Some people may file for bankruptcy while others may seek help from third party debt settlement companies. Filing for bankruptcy sure eliminates all your credit card debt without you having to pay a dime. However, it has long-lasting implications upon your credit score and credit history in general. In today's world, I need not reiterate the importance of credit score in our lives. After bankruptcy, you will have to work really hard towards making your credit rating acceptable. This may become challenging considering that you will have a tough time finding loan lenders. Even if you do succeed in finding one, the interest rates can really knock you off.
If you decide to completely ignore your credit card debt and still try to get on with your life, you will face even more challenges. Firstly, there is no financial institute in this country you can go to without getting your credit history scrutinized. No bank will ever lend money to someone who has had trouble with previous debt. Not only this, but you will also face difficulties in your career prospects, should your potential employer decide to check your financial credentials. Just imagine the amount of embarrassment you would inflict upon your family if you are shown the door wherever you go.
Reduce Credit Card Debt
A better alternative to debt elimination would be to face it without running away. Assess your financial position and see how much you can afford to shell to cover your debt. However, all the measures for reducing the debt amount should be taken before you miss any payments. Not only this will preserve your credit scores but it will also enable your credit card company to favorably look at your situation. If your lender has already wasted time and efforts on your case, he wouldn't hesitate to waste more in a hope of collecting all your debt. A negotiation before you lose out on any payment gives you a head start in debt settlement. You can politely explain your situation to the lender and tell him what you have got to offer as debt repayment. He may not agree right away, but you need to assert yourself without losing your cool. Do not promise something that you cannot accomplish later. Your lender will most likely get your point and may even agree to your conditions. After all, he may also not want to employ a recovery agency and deal with the hassles of commissions, etc. If he is anyway not going to recover full amount, he may as well take what you offer to him in the first place, than give commissions to the third party and end up with the same amount in his hand. If you are not confident about negotiating yourself, you may hire a debt settlement firm. But then, be prepared to make provision for their fees.
Thus, it is indeed a bad idea to eliminate your credit card debt without repayment. Instead work on reducing the debt by adopting legal and moral ways.
