One Size Fits All Credit Card Debt Relief Solutions

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There is no one size fits all debt payment solution.

While there is some truth to that statement, there are some “solutions” that simply work best for more people. There is nothing like paying your bills in full to clean things up.

This is one of those statements that is true but… Lets face it if paying the bills was that easy, there would not be a debt problem to be solved. If you find yourself considering a payment method outside of normal monthly bill payment patterns, there are only two basic considerations.

1. Use a method that allows you to maintain and use credit on an ongoing basis?

2. Allow your credit to be ruined in exchange for reducing or eliminating the principal amount owed.

Once you have decided which direction you are going, you then have some other things to consider.

For purposes of this article, I am discussing debt repayment methods that do not damage your credit. I will address other methods in a different article. Here are some common situations:

  • There is some long term reason you cannot make the regular monthly payments on your debt, so you are looking for a solution that give you some breathing room that does not do long term harm to your ability to use credit.
  • Something has changed in your life that has disrupted your ability to pay. You know the situation is temporary. But the disruption can’t be prevented.

You need to be very realistic on your ability to repay this debt. It is common to want to get these things resolved quickly. If this debt is causing pain, “quickly” can easily become 3-5 years. It can be much longer if only the minimum payments are made.

Even a temporary disruption in your ability to pay can take much longer than whatever caused the disruption.

You can could each of your creditors and work a deal. Most of those workouts are temporary.

For people that can make the payment, but whose interest rates have gone to the moon… A professionally managed debt management program works very well. The emphasis is on “management”.

When I refer to a debt management program, I am referring to a program of ongoing actual management. Not just a never-ending series of monthly fees.

In debt management program:

  • You choose the accounts you would like to involve in the program
  • You make one payment to the debt management company, they disburse your payment among the creditors you have selected.
  • They should disburse payments daily, Monday through Friday
  • They should work with your creditors to resolve late charges etc.
  • They should help you to coordinate due dates so payments to your creditors arrives on time. Your due date to get your payment to the DMP will be established so that payments can be disbursed properly.

Be sure to use a company that offers a written guarantee. They do exist.

A good one will set you up so that you can see exactly what will happen without requiring an up front fee. Monthly fees should be inconsequential to your savings in the program.

In other words, the consumer should actually benefit from the services provided. Take your time, companies with excellent customer service are available.

Hope that helps a little.

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Source by Joan Young

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