Debt Management - How to Manage and Eliminate Credit Card Debt

Two of today’s hot button issues are how can I manage my debt and is it possible to reduce my credit card debt? The answer to both is yes you can but it’s not going to be easy. Credit cards are addictive and it’s easy for your charges from your credit card company to get out of control.

Just like people with substance abuse issue you have to admit you have a problem and take responsibility for it. It does no good to go into denial or to blame others for your problem The first step to managing your debt is to admit that you are in trouble and then take action.

Once you have taken responsibility for your debt then it’s time to contact your creditors and let them know you have a problem. Often if you are forthcoming, and let them know, they will offer to reduce your payments, and in some cases, even eliminate some of what you owe them. At any rate the situation won’t get any worse if you do this. The consequences of procrastination on the other hand can be disastrous

Next thing you need to do is look at your assets. How many of them can be converted in to cash and used to help settle your debt. This is especially important if you opt for debt settlement but more on that later. If you can make a good faith effort at paying a chunk of your debt off the credit company is going to be much more willing to work with you.

If after all of this you still find that you are in trouble you may want to consider a debt settlement solution. You may be wondering where do I start? A good place to start is to search for debt settlement networks, free credit counselors or companies that specialize in matching you with reputable debt settlement companies that will best meet your needs.

Once you find a company or companies you are interested in find out if they will give you a free consultation if they won’t drop them and go to a firm that will. Another thing you need to know is that debt settlement services aren’t free. Most charge a percentage of your total debt-between 10% and 60%- to help you settle your debt. Therefore they may want a lump sum payment, or have you make payments into escrow before they will begin to negotiate your debt. Look for a guarantee. Reputable companies will say upfront that they will refund your money if they don’t reduce your debt.

Debt management and eliminating credit card debt isn’t easy but it is doable. It just requires personal responsibility, perseverance and a willingness to do some good old fashioned research to get the job done.

If you want to find the top performing debt settlement companies then here’s some very important advice. Do Not go directly to a particular debt settlement company but instead go to a debt relief network that is affiliated with several established debt settlement companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company.