1. Pay it off, if you have the means,
2. Get a loan and pay off all the credit cards
3. Go to a consolidation company and have them negotiate a lower payment and interest rate with the bank,
4. Or, the world's most embarrassing choice - personal bankruptcy.
A little research will prove quite interesting...
Personal Bankruptcy...
Until October 17, 2005 this was not as bad an ideas as it has become since the rules for personal bankruptcy changed.
First, Congress made it harder for people to qualify. Now we have to have a limited income to qualify - and even if we do qualify - we still have to enter debt counseling and jump through a bunch of other hoops. The object... deny personal bankruptcy to as many people as possible so the banks can earn more money.
Now, people who enter personal bankruptcy but don't qualify for Chapter 7 discharge have to enter a debt repayment program. A repayment program is based on IRS guidelines - a repayment program that makes it impossible for a family to live.
The payments are Court mandated and an unintended future consequence may be – that if for some reason we cannot making your court appointed payments - the judge could have you thrown in jail for contempt of court. As you can see, personal bankruptcy is designed to protect the banks, not for the people, no one can predict what these administrative judges might do.
Unless you qualify for a complete discharge of debt, this is probably the worst and most dangerous choice available.
Negotiation/Settlement...
This is something that we can do for yourself or can hire a company to negotiate with your creditors for a lower rate of interest and lower payments. Debtors can even reach Settlement of the entire debt. This could be a real win if you understand the rules and position yourself properly.
Just make sure that when all is said and done that you get a letter stating the debt is paid in full as agreed and that the Credit Bureaus show no negatives. If you don't, you may find yourself owing more at the end than when you started or having your credit damages in spite of the Settlement. You will find that these companies work for the banking industry - not for Joe Public.
Arbitration...
Many banks, write arbitration clauses into their agreements. They even specify which three arbitration outfits you get to choose from.
The National Arbitration Forum is nothing more that the "rubber stamp" forum for many companies. The fact is if you cannot afford to defend yourself with an attorney you will not stand a chance of them "researching" any material you might submit as "documented" proof of deceptive and misleading practices.
There are some honest arbitration outfits out there but not in this arena.
Elimination...
The public may not be familiar with this method and if they have read anything about eliminating credit card debt, it would be coupled with reducing the debt by the method already presented or criticized as a scam. It is not what would call mainstream. It won't be advertised on TV or radio like the debt consolidation companies or personal bankruptcy attorneys. Though some advertising is starting to happen in radio media, it is starting to happening on the Internet but will never compete with advertising financed and approved by the banks.
One thing everyone should be aware of - no matter what method is chosen to handle Credit Card debt; from do nothing, to consolidation, to personal bankruptcy, to elimination, there is always going to be risks. Nothing is 100%. Even people who pay off their debt can end up being sued by banks. It is not just because the banks are dishonest. It is because they keep such miserable records. The banks make literally billions of errors every year and debtors get to pay the price.
Debt elimination is designed to help consumer, the debtor, not the bank.
These are just 2 example of what we mean…
In Texas
"Hello, I'm quite a happy client in that I was able to have a bit over $52,000 of alleged credit card debt relieved. I was assigned a resource specialist last February 2003, who worked my case with me. I was delighted with her quick response and knowledge. I actually started having fun with the process! By September 29, 2003, my balances were zero and now I'm in credit repair. I encourage everyone to stay connected to the info calls and read the websites to become comfortable. Thank you DRES! I was looking at a mountain of debt and now I'm free."
In Texas
"I followed my specialist's directives and found myself $42,000 out of debt from 4 credit cards. The hardest part was surviving all the ringing on my telephone for a month or so. My phone is now quiet again. I can't tell you what a wonderful relief it is not to pay the huge interest payments and feel like a free woman like I was born to be. It really was a whole lot easier than the great majority of people think.
I am now paying cash again for things that I buy. I like having the feeling that I have my finances in control once again and am earning and saving to purchase things that I want. Those material things are always less expensive without interest and 'gently owned' items are always significantly less expensive."
Debt Elimination works...
When people first hear about Debt Elimination program, myself included, the first reaction is that this is too good to be true. However, for those who take the time to educate themselves on banking law, Truth in Lending law, Fair Credit Billing and Reporting Acts, US Code of Federal Regulations, Usury law, etc, it becomes very clear that what the banks are doing is not on the up and up…to be polite.
But, don't take our word for it. Here's where you start to advance your Future by ending this Credit Card Debt! Learn your rights under Law. Lawfully freeze your accounts, stop making monthly payment and be FREE of Credit Card Debt in 12 to 18 months. Follow the guide through the Law, Frequently Asked Questions, Testimonial and more at the Credit Card R.I.P
