Erase Credit Card Debt

In order to erase credit card debt, a debtor will need to carefully consider all the options available to him/her that will not only accomplish that goal, but give the debtor the tools to avoid getting into financial problems again. There are several options available to do this, and the most popular is finding a nonprofit company that can work with the creditors and debtor to agree on a payment plan that includes lower interest rates. Consolidating is one way to eliminate the amount of monies owed, and that is especially pleasing to the debtor. No more payments have to be sent to the creditor, but a monthly payment is sent instead to the company that obtained the agreement to consolidate. The company opens an account for the debtor and distributes funds to the creditors every month. It is an effective way to erase credit card debts, but usually means the debtor must get rid of all of their cards up front. There are for profit companies that do this also, but the debtor will have to pay a fee to access the services.

Another way to erase credit card debts is by hiring settlement lawyers. They can sometimes negotiate what is owed down to 50-65 cents on the dollar with payments extending from 9 to 24 months. This method means paying the lawyers a fee to erase credit card debt, which is sometimes a percentage of the amount that has been saved. This method is most commonly used by creditors with very large credit card debt and larger income, and is hard for the smaller debtor, who earns less, to afford. Another method used that is fairly common among attorneys is bankruptcy. Depending upon which kind of bankruptcy is filed, that which is owed may be entirely forgiven, or partially forgiven. Using this method has one serious drawback, and that is it stays on the record for a long time, and there is always attorney fees to be paid.

A company that helps with consolidation of bills usually offers counseling to the debtor so he/she doesn't fall into the same pattern again. By the time the credit card is paid off, the debtor has become accustomed to being without a credit card (since that was part of the agreement), so it is easier to learn new ways of managing his/her finances. To erase credit card debt relieves a debtor of a heavy burden, so the relief of finding a way to eliminate credit card debts means a lot to a person. The lessons learned though the experience of acquiring and finding the means to eliminate debt, along with the counseling received, can and should be passed on the next generation if that person has children. "Poverty and shame shall be to him that refuseth instruction: but he that regardeth reproof shall be honoured." (Proverbs 13:18) When children are taught to appreciate the wisdom of managing money well, they will not follow their parents into financial trouble where they, one day, have to worry about how to erase credit card debts.

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