Getting Carded: Getting Out of Credit Card Debt
Funny, the trouble a little piece of plastic with a black metallic strip on the back can cause a person. Yet, for millions and millions of people getting out of credit card debt seems impossible. There are a lot of reasons people get into debt. You have the impulse buyers. Sometimes people use credit cards for vacations, and still others for absolute necessities. And, each group finds their way into a deep hole. Yet, regardless of the reasons for being there, each one of them knows they are in serious trouble.
What Can I do?
Well, before you start selling your plasma, you might want to consider a few other options. First, if you have a considerable amount of debt a visit to any number of debt counselors is a good first step to getting out of credit card debt.
You want to make sure you understand the rates, penalties, and conditions of all of your cards. It might seem like a good idea to pay the largest in debt credit card down first. But, if, for example it has a low or zero interest for a period of time then paying a smaller debt down first with a higher rate of interest would be more beneficial to you in getting out of credit card debt.
You will want to also be sure that you take advantage of cards that allow credit card balance transfers. Many credit cards offer limited to extended zero percent interest on debts that are transferred to them. Again, this is not going to be a long term solution, but it could give you the breathing room you need to put things back together and really dig in to the idea that you can begin getting out of credit card debt.
Hey, Dad Can You Spare, oh, a Lot of Dimes?
Obviously, sometimes getting out of credit card debt is just too overwhelming. It is not a perfect situation, but you might want to look into working something out with your family. You should know that borrowing from family comes with a whole lot of drama sometimes, but the interest rates are usually far lower than that of your credit card company.
You may also consider asking older relatives for an advance on your inheritance. It might be grandma's dream to leave you big bucks when she dies someday, but she could really give you a lift with at least a little of that cash now. In addition, there are certain advantages to her giving you the money while she is still alive; although, she should consult her tax and estate professional before just handing you over the money.
Of course, the answer you are waiting for is bankruptcy. And, there are times where it is advantageous for you to file for such a thing in terms of getting out of credit card debt. But, the negative affect on your credit report, as well as, recent changes in the bankruptcy codes are making this options harder to do. In the end, collect as much information as you can, use the resources available to you, and you will find a solution that works for you in terms getting out of credit card debt.
