With a Proactive Approach Credit Card
Debt Reduction is Possible
With a Proactive Approach Credit Card Debt Reduction is Possible
With today’s internet revolution serving as a do-it-yourself guidebook, many people think they can reduce their credit card debt on their own. There are plenty of “self-management” tools available. While that may be true if you have very little debt and only one creditor, it becomes extremely difficult, if not impossible if you have a lot of debt and/or multiple creditors. Nevertheless, here are some of the debt reduction methods touted on the internet these days:
Two Popular Methods of Prioritizing Credit Card Payments:
With this method, credit cards are ordered according to their outstanding balances. At the top of your payment list is the card with the smallest balance. Each month you pay the minimum on all cards except this one with the smallest balance. Once you’ve paid the minimum on all your other cards, all of your remaining funds will go towards paying down the card with the lowest balance. Once this card has been paid in full you move on to the card with the next smallest balance and repeat the process. This method is continued until the card that originally had the largest balance is the only one left to pay on.
With this method, you organize your credit cards based on the interest rates of each. The card with the highest APR (interest rate) is at the top of your payment list, with the rest organized according to descending APR rates. You pay the minimums on the cards with lower interest rates and any extra money is put towards the card with the highest APR. Once the card with the highest interest rate is paid off, you move onto the card with the next highest rate and continue the process until all the cards are paid off.
Debt Reduction and Elimination – Why Having Help Makes a Difference
Unfortunately, these methods don’t always work well for those with lot’s of debt and/or multiple creditors. For most people, when your engine clunks you take it into the mechanic for a checkup. Similarly, because of the extraordinary effect debt has on your life, letting an experienced professional review your financial situation is usually the fastest way to debt resolution. Unlike self-management strategies, choosing a professional to negotiate large reductions in your debt will typically get you out of debt faster and for much less money than trying the methods above.
While you can choose to negotiate with creditors on your own, a professional negotiator has the experience and knowledge to get you a more advantageous settlement. Debt collectors who know you are not represented will try to take advantage of you and your eagerness to settle for any reduced amount, and will hold out for a much higher amount. More importantly, for every person there is a background story to how they acquired their debt that often includes medical issues, family problems and overall life experiences. For this reason, it is especially nice to have a neutral third party relieve you of the burden of dealing with collectors.
Why Hire an Attorney?
Collection agencies make their money by buying your debt from the creditors for a fraction of the total debt and then collecting the most they can from you. To maximize their collection efforts, these agencies hire attorneys to represent them in deficiency actions against debtors. Having an attorney on your side throughout the negotiation process levels the playing field, and makes it a lot less likely that you will be taken to court in the first place. In the unlikely event that you are still sued, the attorney will already be familiar with your case and ready to take immediate action.
A debt settlement lawyer provides an alternative to bankruptcy, or more debt consolidation loans. You owe it to yourself and your family to explore the possibility of credit card debt settlement. You’ll be glad you did.
Get started on the road to credit card debt reduction with an experienced and trustworthy attorney at your side. Let the lawyers at McCarthy Law help you get out of debt and move on with your life.