Why You Should Avoid Credit Card Debt Management Services
Many people get themselves so deep into credit card debt that they find it necessary to use credit card debt management services. For many people this feels like their last chance at getting their credit card debt under control but if you are unable to stop yourself from piling up credit card debt then what are credit card debt management services going to be able to do for you? Credit card debt is a snowball effect where you get more credit and you use it but then you are racking up huge minimum payments and huge balances owed and because you can't afford to pay your bills you keep taking on more credit. At some point you are going to have to stop yourself and dedicate a large chunk of time to getting your act together and credit card debt management services are not the thing you need to do it.
The reason you want to avoid credit card debt management services is because they will negotiate with your credit card company and get the fastest deal they can that gets you the lowest payment. The problem with that is that the credit card debt management services will then charge you a fee for this which will take up a chunk of what they just saved you. Also it may be that the credit card company was willing to do a different deal that would not have so adversely affected your credit rating but would have allowed you to be able to pay your debt. Going to credit card debt management services is a sure way to ruin your relationship with credit companies and ruin your credit rating. For many people the thought of salvaging their credit rating is the last thing on their minds but when you come out of your financial hardship and you realize that you could be doing better if you had planned better then you may regret it.
So What To Do
Step one is stop using the credit cards. Cut the cards up and call the companies and tell them you want a freeze on the account so it cannot be used. Get a second job to make up for the lost credit if you have to but stop using the cards. The credit card debt management services will do the same thing to you so you might as well do it on your own.
The next thing you need to do is negotiate with your credit card companies yourself. A credit card debt management service will do the same thing but with their best interest in mind. If you negotiate for yourself with your best interest in mind then you will come out better off.
