How to Erase your Credit Card Debt Permanently

In order to erase credit card debt for good, there are certain things that you must do. Any credit card debt you may already owe, then these must be dealt with as soon as possible.  By clearing the smallest debt first, what you are doing is giving yourself confidence to carry on with clearing the others. When you can see that one debt has been paid in full, then this will encourage you to deal with the other debts too.

However having said that, there are many people who, having more than one credit card debt, may wish to ‘consolidate’. They may wish to combine all of their credit card debts {consolidation} into one debt. They will then pay a monthly amount off this debt until it is cleared. Once your debt is cleared, your name will be taken off the blacklist, and you will be able to apply for higher purchase again..

Consolidation is a very popular way in which you can combine all of your credit card debt – rather than trying to do it by paying off the smallest first, and working your way up. So, if you want to find out more about ‘consolidating all of your credit card bills, click on the link at the bottom of this article. There is one big bonus to consolidating your debt into one, and that is you will receive a much better interest rate on your payments, plus lower monthly payments as well.

Another way to pay off your debt is by contacting a debt settlement agency to take your debt on. What this means is that the agency will act on your behalf, and contact the creditor. They will explain to them that their client { which is you} is having trouble in clearing the debt. Your agency will come to some sort of agreement with your creditor over the phone, in order to get your payments lowered.

A contract will be made, if your creditor agrees to lower the repayment of the debt.  You need to sign the contract. By signing the contract you are basically stating that you can now meet the revised payments. Any breaking off this debt will see the contract cancelled by your creditor, and they will then demand full payment due.

Any failure to pay on your behalf, will see your debt sold to a debt collecting agency, who will hound you for the money. They will act on your creditor’s behalf. Failure to still pay could see you in court. If you lose the case you will then have to pay court costs, plus your credit card bill.

With a Debt Consolidation Agency, the debtor {you} will pay a large payment off your debt straight away – this will be for a discounted price. Of course, this is provided that you can afford to pay a large sum of money. In the long run. However, you will gain great satisfaction in seeing your debt shrinking very quickly indeed – thereby saving you money in the long run.

With credit card debt, one must remember that any credit debt you accrue would have had interest added to it – due to late payments. So, you will not only have to deal with the original debt, but you also have to deal with paying off the interest too. APR {annual percentage rate} is added to your bill if you are late in paying. However, no APR is added if your credit card bill is paid ‘before’ the due date, or on the date that it is due.

if you feel that you are struggling with your credit card bill, and feel that you are going into debt, then contact your creditor. Explain to them that you are struggling, and that you will not be able to pay on the due date. By getting in touch with them, you are letting them know that you have a problem which you want to sort out.

Many creditors appreciate early contact by you, if you are having trouble paying your credit card bill. The one thing that no creditor appreciates is if you ignore their letters and phone calls demanding payment. By ignoring your bill you are making a rod for your own back. The interest builds up on the original bill, plus you will be unable to obtain credit anywhere else until your bill is paid off.

This could have a wide-ranging affect on your life. Your ability to purchase a car, go for a mortgage, or buy things on higher purchase will be severely effected –  that is, until, your credit card debt is cleared. By contacting your creditors, and explaining that you wish to pay off your debt,  it will go a long way into clearing your name.

Your creditor may give you a longer period of time to clear your debt. Plus, they may also lower the amount that they want you to pay. Once you have arranged to pay off your debt/s, your creditor will send out a revised statement with the new payment they expect you to make, and with a contract that you must sign and send back.

You must stick to the agreement that you came too with your creditor, failing to do so will see the arrangement cancelled and the contract broken. Your creditor will then pass your debt to a debt agency who will not be so understanding.  However, as explained above, there are many people who prefer to have a Debt Settlement Agency contact their creditor, on their behalf, if they are in any way intimidated by talking on the phone to their creditorl 

As far as consolidating companies are concerned, if you choose to go down this route then be sure that they are upfront and transparent in all of their dealings with you. There are many consolidating companies out there, all vying for your custom, so be sure that you have done your homework on the company BEFORE you hand them payment. 

Do not fall for the many false promises that some of these companies make in order to gain your trust, and your money.  Some consolidating companies may be unsympathetic to your needs, and will concentrate only on debts that are small, so again, you must be aware of this at all times.

The Best Consolidation and Settlement Companies