Get Rid of Bad Credit Card Debt

By: Ronnica Rothe

Bad credit card debt whether $10,000, $25,000, or more can really hurt your financial health. High credit card balances on your credit report can hurt you when you want to make a big purchase like a car or home by preventing you from receiving the loan you need. As you near your credit limits on your cards and have a hard time making payments, your creditors will increase your interest rates. This will make your minimum payments increase with a greater portion of that going just to pay interest.

If you find yourself in this situation, you need to find help. Unless you anticipate your income dramatically changing in the near future, you will want to find help. A good place to start is to discuss your situation with an accredited credit counselor. The counselor can discuss what option you may have including a debt consolidation loan or a debt management plan.

Debt consolidation loans can be beneficial for those who still have good credit. One type of loan that can consolidate debt is a home equity loan. Homeowners can use the equity that they have in their home as collateral for the loan. They can then use the loan money to pay off their credit card debt. This can be helpful because home equity loans usually have a lower interest rate than credit cards. However, if you do not pay the loan, you now may lose your house.

If you do not own your home or if you are not willing or able to get a home equity loan, than you might consider a debt management plan. With a debt management plan you will be able to pay all your credit card bills with one payment to the debt management company. They will then distribute your funds to your creditors. The benefit of this plan is that the debt management company will work with your creditor to lower the interest and fees that you'll owe. This will allow more of your money to pay off your actual debt each month, speeding up the payoff process.

There are other possible helps for your bad credit card debt situation. Consider different options that you may find the right one for you.

Most Read Articles On
"Credit Cards"
Top Searches on
Credit Cards
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Credit Cards
 



Share this article :
Click to see more related articles