Dealing With Credit Card Debt
By Dr. Drew Henry
Are you worrying of paying your credit card debt? Are you truly
in trouble with your financial? Dealing with credit card debt is not as hard as
you may think.If there's any consolation, you're not the only one facing such
situation. At some point, many people like you face financial crises with credit
card debt. But you must remember that your financial situation doesn't mean it
should go straight to the dogs, making it worse than as it is.
Here are 5 tips to help you cope with your credit card debt:
1. How to address Debt Collectors.
There is a law that gives certain conditions for debt collectors as to when
and how they should ask you to pay. The federal law, Fair Debt Collection
Practices Act, clearly states that those collecting debts may not bug you, give
false assertions, or do practices that are not fair when they are getting to
collect money from you.
2. Make a Budget.
If you want to have a grab of your financial situation before you lose
everything, making a budget is what you should do first. Assess how much do you
get from your income or other means and your expenditures. For example, if
getting that posh apartment means you have to limit your meals to once a day,
then it is not a great and sound budgeting decision. Your goal is ensure that
you can answer for all the basic necessities: food, housing, clothes,
health-related costs, among others.
Generally, personal bankruptcy is known as the last choice to fix your
ballooning credit debt. A bankruptcy unfortunately stays on your financial
information report for years. Getting additional credit, buying a house,
sometimes even getting a job might be hard for you. Technically, however, it is
a legal way of addressing your credit debt.
4. Contacting Your Creditors.
Remember: Running away from your creditors is not the answer. It is not a
solution, and may in fact lead you to bigger problems. If you are having trouble
paying off your debts, address this immediately with your creditors. State to
them sincerely and fully the reason why it has become hard for you to pay these
debts, and check if they could give you a revised payment arrangement that will
put you at ease on your payment terms. Do not let creditors turn over your
situation to someone or an agency to do the collecting for them, as this means
that they have given up on you.
5. Credit Counseling.
You could also consider getting the aid of groups or institutions that will
help you in your problems. If you managed to have an improved payment
arrangement of your debt with a good credit counseling organization, creditors
may approve of your proposition and accept your modified arrangement plan.