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How To Achieve Credit Card Debt Cancellation

By First Knowing What Your Options Are And Then Choosing The Debt Reduction Path That Is Right For You

Worrying about credit card debt cancellation can be a very stressful ordeal. Not knowing what your debt relief options are (or not understanding how those options work) can add even more worry and stress. It is my sincere hope that this article will help you on your way to canceling your credit card debts (and other debts) through educating you on your options and recommending some services that will likely prove invaluable.

There are many reasons why individuals like yourself get into debt trouble and hence seek out credit card debt cancellation help. And depending on your particular situation, there may be one type of debt help option or service that will suit you and your situation better than some others. So, let's first of all take a look at your options and help you decide which credit card debt cancellation choice is best for you.

1. A debt management program

Also known debt consolidation, a debt management service can be a useful for people who are continuing to make debt payments, but cannot meet monthly minimums or simply want to reduce the amount of interest they are paying. Many debt management companies also provide credit counseling to their customers, so that future debt problems can be avoided. Here are some of the benefits of this type of program..

  • Reduced monthly debt payments.
  • Consolidate debt payments so that you simplify your monthly budgeting.
  • Reduce interest rates on your debt.
  • Eliminate late charges on your credit cards.
  • Eliminate collection calls from credit card companies and/or collection agencies.

If you would like a free analysis of your debt situation here is the non profit organization that we recommend to our visitors.

For a more detailed explanation of debt management programs please review this article. 

It is important to note that that this type of debt consolidation does not reduce the amount of credit card debt that you owe. If you are looking to reduce the amount of debt you owe right now then you should consider the following credit card debt cancellation option. 

2. A debt negotiation program

This type of debt help service aims to reduce the amount of actual debt that you owe. Typically it is useful for consumers who are experiencing a hardship (loss of job, illness etc.) and are considering bankruptcy as a possibility. Under this credit card debt cancellation scenario, you (or a professional debt negotiator) will negotiate lump sum payments with your creditors to settle your debts. These payments can be as small as 10-15% of the total outstanding debts in some cases.

We recommend that you use the services of a professional debt cancellation company. The reputable ones will work for a percentage of what they save you on your debts, with no upfront or ongoing costs to you. In other words, if they don't perform they don't get paid.

One such company is Curadebt. They provide both debt consolidation and debt negotiation services and will prepare a free no obligation debt analysis for you just for visiting them.

If you would like a more in depth discussion on debt negotiation as a tool for credit card debt cancellation click here.

3. A debt consolidation loan

The premise behind a debt consolidation loan is as follows. If you can take out a new loan that has a lower interest rate and/or a longer payback period than your current debts, and use the proceeds of the loan to pay off your current debts, you will be better off financially.

If you are homeowner interested in using this technique to help achieve your credit card debt cancellation, you have a possible third incentive. By using your home as collateral for the debt consolidation loan (in the form of a mortgage refinance, home equity loan or heloc) the interest may be tax deductible. See your tax advisor for full details.

If you would like to read a more detailed discussion on debt consolidation for home owners, click here.

For non-homeowners, finding a debt consolidation loan for credit card debt cancellation may be more difficult. But there are some excellent online resources.

Here is the resource that we recommend to our visitors who are seeking unsecured personal loans. Click here for more information.

For a more detailed discussion on debt consolidation loans for non homeowners, click here.

4. Bankruptcy

It goes without saying that bankruptcy is a last resort. A bankruptcy can stay with you for 10 years. There are other options.

We strongly recommend that people who are considering bankruptcy as an alternative look very carefully at a debt reduction plan as a solution. You can find information on receiving a free, no-obligation, custom debt reduction plan here.

If you are considering bankruptcy as an option please visit our section on bankruptcy or visit Legal Match for a free, anonymous consultation regarding your situation.

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