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A Short Guide to Freedom from Credit Card Debt

It is a fact of life for most people that they have Consumer Credit Card debt.  Indeed, most families have between $10,000 and $20,000 worth of this debt alone.

If you add other types of debt, like a mortgage or a car note, it is easy to see how easy it is to drown in debt. 

Gaining freedom from debt requires careful thought. It is something that must be carefully planned and if the plan is followed, freedom will follow.  

Now, planning to get out of credit card debt is not as difficult as it might sound. Basically, you are lining up your debts and deciding simply which one you will attack first and then how much of an attack you will use on each card or account.

The Following is a Quick Guide on How to Get Your Freedom:

  1. List all of your credit card accounts on a master list.
  2. Decide if you will go after the smallest first or if you will do the opposite and go after the largest first. 
  3. Decide how much extra you will pay over the minimum payment on the credit card account you are attacking. 
  4. If possible, make your monthly payment automatic from your bank account so as to make sure you are avoiding late fees on your target account. 
  5. Remember to keep current on the minimum payments on your remaining accounts and place automatic payments on these also to avoid late fees being generated.   

Using the above plan, you will be well on your way to freedom from credit cards. This plan can be supplemented with other strategies to form a comprehensive attack on your consumer credit debt.

Debt consolidation, and negotiating payment terms that may be beneficial to your overall goals, may also be done. Playing the game of debt consolidation with a 0% interest rate credit cards can be applied also.

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Often, you could transfer your high-interest credit card accounts into a 0% card for a short period saving you interest charges. Then, do this over and over to avoid interest charges on your credit card debt. In this way, you are paying only your principal debt without unnecessary interest. 

negotiating payment terms

If all the above seems too much or your debt is so huge that you feel you need help, there is ample help out there. There are firms out there that will negotiate with your creditors and establish a new consolidated payment for all your debts.

You will pay then one monthly payment instead of the multiple payments you were paying. This service will help you get a handle on the seemingly insurmountable debt that you face. Of course, Bankruptcy is always an option. Under Bankruptcy laws, a person can get out of most consumer credit debt.

Under Bankruptcy laws, consumer credit debts are usually either a Chapter 7 Bankruptcy Petition or a Chapter 13 Bankruptcy Petition.  In the former, debtors usually can get their credit card debts wiped out if they do not have any or minimum secured assets.

In the latter, debtors can protect and keep their secured assets while paying pennies on the dollar towards satisfying their back debts.

There are many Bankruptcy lawyers in Hamilton, New Jersey, and calling one for a consultation will help the debtor get an idea of what’s out there in the way of options for the debtor.

You May Like to Read: What Does a Debt Counsellor Do?

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