Bad Debt Credit Card

Bad debt credit cards are the number one unsecured money problem in the country for hampering individuals and families from the financial freedom that is important for a secure financial future. With interest rates sometimes more than 18% on credit cards, many purchasers end up holding off collection agencies by merely paying the interest every month to the company without ever touching the principle for years. Charge offs, skipped payments, and halted payments are common for those who hold a bad debt credit card. Even when a person desires to pay off bad debt credit cards completely, help is needed to find the best option for financial freedom.

Several common options are available to those who hold such cards and have no possibility of paying them off soon. Consolidation companies, credit agencies, and settlement companies are several of the common choices available today that can tackle mounting financial burden. A person can also choose to honestly contact the company or companies to which he or she is obligated to and personally attempt to negotiate a pay off plan. Many times this option is not feasible because of the lack of expertise the general consumer possesses regarding bad debt credit card resolutions.

Timothy 1:8 instructs God's people to "Be not thou therefore ashamed of the testimony of our Lord, nor of me his prisoner: but be thou partaker of the afflictions of the gospel according to the power of God;" It is important to keep in mind that God did not create money to bind His people to Him, but rather give everyone a test and taste of the responsibility of getting to heaven. Take any opportunity presented to better a personal financial life as conviction of what God truly has entrusted to each and every person.

It is much better in most instances, to thoroughly research a person's best financial resolution to bad debt credit cards through companies who specialize in bad debt credit card relief. A careful shopper will find different relief plans offered through agencies who specialize in this area, settlement companies and consolidation companies. These agencies are non-profit agencies many times offering free, or 'volunteer' fees to the consumer in exchange for counseling and pay back plans. Many of the payback plans include consolidation of all monthly payments with a reduction in interest. A down side to some agencies is their relationship to creditors, which can be a conflict of interest for the consumer.

Consolidation companies offer varying services but commonly advise as to a consolidation plan for all debt with one flat monthly payment. These companies sometimes work with non-profit agencies and can charge fees for their services. A more popular option that has arrived for holders of bad debt credit cards is the settlement companies. Many offer financial counseling for no charge unless a workable plan for wiping out bad financial situations is agreed upon and implemented. They receive payment for their services through a percentage of the settlement that they are able to negotiate which is a motivation to secure the best settlement for the consumer. If interested in any bad debt credit card solutions, check a companies' website for membership in the Better Business Bureau as well as licenses, bonding and settlement insurance for their company.

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