Do you need credit card debt settlement services?
Having a credit debt situation can lead to unwanted financial situation in the future – especially if you have defaulted at times in the past. One way of dealing with debts is to take advantage of debt settlement services or debt settlement program which help to resolve issues related to credit card debt settlement. But first you need to be sure whether you need credit card settlement services or not.
Outstanding credit card amounts and the inability to pay of the debts is a growing issue and should be dealt with keeping in mind a certain approach so that you don’t reach a situation where things are completely out of hand and you just “respond” to the situation rather than controlling it. Certain suggestion may help you to organize yourself and gain control of your debt situation. Here’s what you can do:
- In order to plan your own credit card debt settlement program you need to arrange your credit cards in accordance to their statements. Sort out the cards with the latest credit card statement on top, and arrange other cards in a decreasing order based upon the “minimum payment percentage” which is generally displayed in a small print on your credit card statement or the card holder agreement.
- Make sure the cards are so arranged that the card having highest interest rate is at the top and all other succeeding cards are chronologically sorted with the least interest rate card placed at the bottom.
- Total the minimum payment required for all the cards.
- Work out the total amount of cash that can be generated by you each month – cash which can be used for settling your debts. It’s important to think in a practical manner here. Be realistic by adding up your monthly expenses required to sustain yourself and your family and add it to your compulsory commitments if you have any. If your results indicate your outstanding amount is way high as compared to your net payable income, then it’s time to budget yourself and all your activities, and curtain some of your personal expenses so your net “payable” income can increase. Or the other option is to work out an alternative source of income by taking up extra work and earning from it.
- Now consider your sorted credit cards. The top most card has the highest interest rate. Pay the minimum balance of this card PLUS the additional amount you've worked out to reduce your credit card debt each month. For other cards pay the “worked out” amount.
- Keep on doing this until the top most credit cards (the one with the highest interest rate) is paid off entirely. Then consider the amount you were paying on that “paid off” credit card. Since you have one less card to worry about, add the monthly amount of this card to the minimum balance on the second credit card (which is now on top since the first card has been paid off).
- Keep on repeating the above process till all cards are paid off.
The best person to judge whether your debt status requires a debt settlement program or not is you – the debtor. If your financial status is well under control you might be able to deal with the situation yourself. If your repayment plan is not effective, or not working in your favor, an alternative option is always available – use debt settlement services. Credit card debt settlement services are a proven way to deal with your credit card settlement issues, since debt settlement arbitrators are known to provide favorable results.
Please note the above suggestions are “ideas” which may be beneficial to you. However it is recommended you use your discretion while employing any or all of the “suggestions”.
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