The Average American has credit card debt balances that are quickly approaching ten thousand dollars. With soaring interest rates increasing the principal substantially, it is little wonder that more and more debtors are filing for bankruptcy every year. Fortunately, there are several debt relief alternatives to bankruptcy that can help you pay off your unsecured loans without taking such measures. Below, we’ve listed a number of signs that should show you are ready to enlist the services of these programs.
1.) Past due balances
Of course, failing to regularly make the monthly payment requirements on your credit card debt statements would be a reflection of a need for debt relief. There are numerous reasons to account for a failure to meet the demand – unemployment, divorce, and medical bills are all prime examples of financial hardship, any of which can trigger a cycle of falling behind in payments which in turn makes it that much harder to get ahead.
2.) Late payments
Paying your credit card debts behind schedule hurts your credit score and raises the attention of debt collectors. Getting behind on payments can also cause credit card companies to increase your rate of interest, making your ability to pay that much more difficult with every passing month, invalidating some forms of debt relief.
2.) Minimum payments
Though you may find enough resources to barely come up with the monthly minimum payments required by your credit card debt accounts, just meeting the minimum does little to actually reduce your totals, particularly when considering the interest charges applied each month. You’ll find that this pattern results in your principal increases over time.
4.) Creditors are calling
As soon as you fail to meet the payment schedule for your credit card debt, you will likely begin to receive calls from your lenders, reminding and/or requesting you to pay. This is an early sign that your credit card debt has exceeded your means. Stepping up your efforts to regain debt relief control will become a necessary measure.
5.) Collections
Generally, a credit card debt that is sixty days overdue is then assigned to a collections agency, but some companies will take action as soon as a single payment is late. At this point, if you are unable to manage the payment of the past due debts, it is highly recommended that you seek the help of a debt relief service for guidance.
What’s next?
The longer you wait to address unmanageable credit debt, the more severe the problem gets. Yet as dire as the situation may appear, it may not be necessary to go the lengths of filing for bankruptcy. There are debt relief programs available that can help you manage your credit debt and pay off your lenders without the involvement of the court system. The most effective new credit card debt relief option, debt settlement negotiation, can be highly instrumental in lowering your debts to the extent that they could be eliminated in just sixty months. Following a consultation – make sure you sign up with a firm that offers no-cost consultations, estimating facts and figures upfront and for free – a debt settlement professional will barter with your credit card debt lenders in the hopes of lowering your overall debt by as much as sixty percent, to be repaid through just a single monthly bill.
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