Debt Management Plan - If you are struggling to eliminate credit card debt, you may want to consider a debt management plan.
Debt Settlement - Learn about debt settlement and its potential pitfalls.
Bankruptcy Basics - Learn some of the basics about filing a Chapter 7 or Chapter 13 bankruptcy. Bankruptcy Process & Timeline - General description of the bankruptcy process and timeline.
Contacting Your Creditors - It's a good idea to contact your creditors as soon as possible to find out what programs they are willing to offer.
Debt Consolidation Loan - Weigh the pros and cons of consolidating your debt into a single loan.
In general, a debt consolidation loan can be defined as a loan that combines multiple debt obligations into one single loan.
These loans tend to have lower interest rates than many of the existing debts, and also allow the borrower to make only one payment per month instead of many.
These loans are generally available from banks, credit unions, and other financial institutions. As you can see, there are some important factors to consider.
If you are struggling with high credit card debt, you must first strive to change your spending habits and learn to always live within your means.
It makes no sense to consider a debt consolidation loan if you will be continuing to incur monthly balances on your credit cards.
In that case, all you are doing by consolidating your debts is shifting debt instead of paying down debt.
In the long run, you will have a higher overall debt balance if your spending behavior does not change.
If you want to get out of debt, you need to explore your options and decide which is best for you based on your personal values, your age, the severity of your debt, the type of debt you have, and how much credit score damage you're willing to sustain.