There 
are many ways in dealing with credit card debt, and it depends on where you are, in your debt. For some, it may just be usage, and for some, it may be close to deciding on bankruptcy. However, no matter how far you have gotten into debt, please be aware that bankruptcy is only a last resort.
You’re In Over Your Head
Buying things is fun, but when you get to the point that you realize you’re in way over your head, you’ve gone too far. You are living your life on borrowed money, and it’s time to fix that and work toward gaining financial freedom. But you’ve never had to deal with this and have no idea where to start or what process to take to get out of credit card debt.
What would it feel like to be financially free? There are many options to getting out of debt, here we focus on a person who has income and can learn to manage their money.
Stop Right Now and Figure Out Where You Are
Obviously, the first thing to do is to stop spending money on your cards. There are some out there that recommend keeping one card for emergencies, and some who say cut them up and open a savings account for emergencies. Use a professional to help you in what would work best in your situation.
Next is that to know where you’re going, you have to know where you are first. Prepare yourself for taking this important step to figuring out what your debts are. Begin writing them out in an easily understandable way. This list will end up being a map to help guide you to the financial freedom you seek.
Here Are Six Options for Dealing with Credit Card Debt
You can choose to pay your debts off in the order of the highest interest rate or by the lowest owed. If your choice is the highest interest rate first, then great, start there. Use any available money to pay extra on those top high-interest debts on your list. Continue to pay your other cards at their minimum payment and you will continue to pay each credit card off using this process. While some people feel that this is a good way to go, another option is to pay off the lowest amount you owe first. Paying a card off will give you a sense of accomplishment and kick start your momentum towards getting the rest paid off.
The next option is to decrease the interest rate on your card to a 0% card, a good choice only if you put yourself in the mindset to ensure the card that this new card is paid off in the allowable 12 – 18-month window. Make sure you realize that the credit card company is not obligated to let you know when that period is over, so track this carefully. If you don’t track it, you will find yourself with a new interest rate ranging anywhere from 18 – 24 percent or higher. If you are not careful, you may find yourself in a worse position than you are in now. Make every effort to stick with this plan once you decide to take it on.
Another choice is debt consolidation, BUTONLY THROUGH A LOAN WITH YOUR BANK NOT A DEBT CONSOLIDATION COMPANY. This entails taking out a loan to pay your other loans. If you are eligible to refinance at a better rate, then this option will reduce your debt more quickly. However, one issue with this is that most people are already past due and won’t qualify for a new loan, but it’s worth a shot. Be wary of debt consolidation companies or debt relief companies.
Next is Debt Settlement or Negotiation. With this choice, if you have been behind for a significant amount of time, you could arrange for a reduction in the amount you owe. Be aware, you may have to pay taxes on the money you save, so it’s important to speak with a tax advisor.
The last resort is to declare bankruptcy, an option that you should think about long and hard before proceeding! Get as much information as possible to make the decision that is best for you. Feel free to call us for a free consultation.
Taking the opportunity to deal with your debt is a major step to financial freedom. The most important thing for you to do now is sincerely considering what got you here to start with. Begin making changes in your spending habits to stay out of debt. Failure to take care of this will wreak havoc in all areas of your life including your health
