Best Credit Card Debt Relief Programs
As common men and consumers, we need to know very important facts about the debt relief industry. The first point is that more than half the agencies, people, so-called experts and the 'very' knowledgeable experts, are frauds. Who will simply charge you some obnoxious sums in return of empty promises that they will get your debt volume reduced. Also there is nothing known as a 'Credit Card Debt Relief Act', the idea that the government will provide us with grants and money so that we would be able to pay off our credit card debts is simply ridiculous. It is my personal recommendation that the best relief program to get out of credit card debt is the 'do-it-yourself' program. Let me give you an analogy, I put on weight due to reckless food habits, abnormal sleep cycles and alcohol. Well, I cannot ask or pay some other person to reduce down my weight for me. I have to get down to a good diet and exercise and cut it down myself. The same is the case with your credit card debt. Sorry for those harsh words, but it is my duty to forewarn you if you are about to get robbed.
Guide to the Best Credit Card Debt Relief Programs
You may require some guidance and also some credit card debt settlement tips, for which you can turn to the following sources:
- The best source for information is the Federal Trade Commission, who not just publishes information on its website but helps you reduce debt in all possible ways. One of the best activities organized by the Federal Trade Commission are the workshops, lectures and conferences about debt relief and how one can get debt relief.
- Secondly, you can take up what is known as a Christian debt relief, a non-profit debt relief that is usually arranged for by the Church, or Church affiliated or recognized agency. This program is safest of all and you will be guided in the most positive manner. Such debt relief programs sometimes also help you in getting reliable, good termed debt consolidation loans.
- Thirdly, the Federal Trade Commission (FTC) has put forth some compliance for all the 'best' credit card debt relief programs, any program fulfilling the FTC's compliance is a reasonably good credit card debt relief program.
Here are a few steps that you can take up, in order to bring down the level of debt:
Credit Counseling
Most of us do not know how the credit rating and the credit cards work. There is some simple mathematics involved in the mechanism of credit cards and credit card debts. Understanding this mechanism will help you to pay off the credit card debt quickly.
Stop Credit Cards
The next step is to phase out the use of credit cards. Simply, gradually, stop all the credit cards, whose credit limit you do not use properly (fully) and the credit cards that have high and unnecessary APR's. Reorganize your credit cards and even the loans. In this reorganization, 'take everything possible and give nothing back' meaning that, keep the low interest or fixed APR credit cards and block or stop all the credit cards that have unreasonable terms and conditions.
Payback Time
Next off, make a pro-rata allotment or a proportionate allotment of all the debts you have incurred. If you pay back in proportion, then your credit score would not come down drastically. Several agencies would offer to do a credit card debt settlement for you. However I would strongly recommend you to be careful while signing up for the same. Make sure that the agency is in compliance with the FTC guidelines before signing up.
Debt Consolidation
As a last resort to debt relief, I would recommend reliable and recognized debt consolidation loans. Such loans would basically help you to pay off the debt instantly. You would then have to pay off the long term debt by taking up a small set of low interest installments. Several recognized banks charge some of the best credit card debt consolidation loans. Again avoid private loans as there is a possibility of being a victim to high interest rates.
Credit Card Debt Relief: Dos and Don'ts
What to Avoid
There are some things that you need to avoid as there are several people out there who would want to mislead you for your money. Debt negotiation is one proposition of several people. Under this scheme, the debt is negotiated with the credit card company, in exchange of a fee. This is possible in some cases, but to a very limited extent. Tell me which credit card company would be willing to cancel or forgive the money that you have borrowed from them. The most they can do is cut down a couple of fees and bring down your APR. But you can do this on your own, in a much more convincing manner, with more successful results. All you need to do is give the consumer cell a distress call. Also avoid believing in rumors such as Obama credit card debt relief, it's a public misconception. The Obama administration has merely sought to relieve the economy from recession and there are indeed some reforms such as Credit card reform act of 2009 are being inducted. There is however no relief or forgiveness.
What you can do
If you want help in getting out of credit card debt then there are a couple of things that you can do. A government credit card debt relief program, would do just fine as such programs provides a really good guidance for DIY debt relief. The debt accumulated by credit always seems like a mountain, however if you take up a systematic approach then you can pay off the mountain of debt, quite easily and systemically.
Paying off any kind of debt should be a systematic process, and should always be done on your own, due to the fact that who knows your own debt, better than you yourself. There are several relief agencies that will charge you a great deal of money, and yet, do not promise you anything. And in several cases the debt is actually never brought down substantially, it's reduced by insignificant percentages.
