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Unemployment rates are skyrocketing, home foreclosures are at record numbers and consumer debt is at an all time high. Unable to deal with all of these financial pressures, many people are finding themselves considering bankruptcy to eliminate their credit card debt. But before you contact a bankruptcy lawyer, read this article. You can eliminate credit card debt without bankruptcy and this article will get you started.
Before you consider bankruptcy as a solution to your credit card debt, you need to look at a few other options: debt consolidation, debt counseling and debt elimination programs.
Debt Consolidation
If you are considering filing bankruptcy to clear your credit card debts, then you've probably looked into some sort of debt consolidation program. While not the best way to eliminate your credit card debt, these programs are worth considering.
Debt consolidation is simply a process of grouping all of your current debts (credit cards, auto loans, mortgages, etc) into one loan. The best way to do this is through a home equity mortgage with a good rate. The problem in this economy is that with mortgage requirements becoming stricter, few people can qualify for a second mortgage to pay off their debts.
In addition, while these programs may lower your rates and payments making it easier to pay off your debts in the long term, your total debt remains the same. This is one of the many reasons I recommend a debt elimination systems instead of a debt consolidation program. I have explained the debt elimination systems below.
Debt Counseling
Debt counseling can help you eliminate your credit card debt, but it works for only a small percentage of people. To find out if debt counseling will help you, ask yourself the following questions:
-Is my debt a result of lack of self control?
-Is my debt a result of poor spending habits?
-Is my debt a result of overindulgence in "wants" rather than spending on my "needs?"
If you answered yes to any of those questions, than debt counseling may work for you. However, if your debt is a result of unexpected costs (medical, job loss, etc) and not a result of lack of self discipline, than debt counseling will be a waste of your time and money.
Debt Elimination Programs
The most effective way to eliminate credit card debt without bankruptcy is a debt elimination system. Rather than rolling your debts into one loan or counseling you on your spending habits, debt elimination actually erases the debt you owe your creditors.
Debt elimination programs are available to anyone with credit card debt. You don't need to qualify as you do in debt consolidation. IN fact, most of my clients are able to eliminate 70%-90% of their credit card debt using one of the systems I recommend. But do your research.
While there are fantastic programs available, watch out for the scams. Because of the unfortunate experiences some people have had with the bad systems, I've set up an entire website to evaluate and review the best credit card debt elimination systems for my clients. You can find a link to it in the about me / resource box on this page.
I hope this article has convinced you that you can eliminate credit card debt without bankruptcy. Bankruptcy can ruin your credit and cost you $1,000' in lawyers' fees. Using one of the systems I've reviewed for my clients, you can save your credit and get out of credit card debt.
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(http://www.FreeDebtReductionHelp.com)
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