If you're having a serious problem with debt, you may have already gone online looking for a solution. If so, chances are that you've been overwhelmed by the amount of information available. You may have seen the listings titled "Get help with credit card debt," and "Free debt counseling for credit card debt" and on and on. In fact, last time I counted, there were more than 50 pages of search results for the term "credit card debt solutions."
Feeling confused by all this?
If you searched on the term as I did and ended up feeling dazed and confused, don't feel badly. I know it's tough to decide what to do when there are so many alternatives screaming for attention.
It's not that complicated
The good news is that when you boil down all these search results, it's not that complicated, as there are really only four ways to cope with big credit card debt. And by big, I mean debts in excess of $7,500.
What are these four ways? They are a debt management plan, a debt consolidation loan, bankruptcy and debt settlement.
Three also-rans
I think that of the four options, three are what I call also-rans. These are solutions that can work but they all have serious downsides.
The first, a debt management plan, is something you usually do with the help of a credit-counseling agency. The agency will help you develop a payment plan and then "sell" it to your creditors. You will have to surrender all your credit cards but if you follow the plan, you'll probably be out of debt in about five years.
Debt consolidation loan
This one is pretty self-explanatory. You go to your bank or credit union and get a loan large enough to pay off all your creditors. However, it may take you as long as seven years to pay of the loan and you better not take on any new debt during all that time.
Bankruptcy
Thousands of Americans file for a chapter 7 bankruptcy every week. You could, too. This would definitely get rid of your credit card debts and some of your other "unsecured" debts. But it would leave a stain on your credit report for as many as 10 years. That's 10 years during which you'd have a tough time getting any new credit.
The winner
My personal belief is that the best way to cope with big credit card debt is through debt settlement. Why is this? First, it's because unlike a debt management plan or a loan, debt settlement will actually reduce both your credit card balances and interest rates. The simple math is that if you owe less, you can repay your debts faster and with a more affordable payment plan. In fact, a good debt settlement plan should help you get debt free in 14 to 48 months.
You can't get out of big debt scot-free
Unfortunately, debt settlement also comes with a downside. It will have a negative affect on your credit rating. But it won't be as severe as if you filed for bankruptcy. The upside is that you'll do the right thing, which is to pay off your credit card debt, but it will cost you less and you'll be out of debt much quicker. And wouldn't being out of debt feel really good?
Visit http://www.debtconsolidationusa.com/debt-consolidation-advice and see how Debt Consolidation USA has helped over 100,000 consumers save millions off their credit card bills.
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