Everyone is looking for an answer to stop paying credit card debt, an easy way to come out of the debt cycle. There are many options a debtor can chose from to stop paying credit card debts, declaring one bankrupt to taking help of Debt settlement programme.
It is quite natural to be in dilemma before choosing the right way out. Declaring bankrupt used to be an easy option earlier but this may lead to bad credit rating, resulting in no future possibility of credit from the bank as creditors are at total loss. Now, another option is to take the help of debt settlement programmes.
Lack of awareness is one of the main reasons behind people not opting for debt settlement programmes. One basic step towards such settlement is to stop paying credit card debt at once. Instead, take help of Third Party Settlement Company. One can find many such companies through internet. This third party will reach out for settlement to the creditor on their behalf. All the negotiations are done keeping in mind consumer’s extent of debt and ability to repay.
A good and legitimate debt settlement third party always succeed in bailing consumer out of the debt by negotiating a win-win situation for both. Many a times a bank is ready even to give 50% discount on settlement than losing all money due to bankruptcy.
But the most effective way to stop paying credit card debt is in managing your credit card cautiously. Don’t let your loans spiral into a never ending debt trap. Few easy steps to follow are:-
a. Don’t allow yourself the privilege of more than two cards.
b. Get rid of the card with highest minimum monthly payment first.
c. Go for the card with minimum interest rate.
d. Always pay a few hundreds more to the card with maximum outstanding.
e. Leverage on the no interest period and pay off quickly.
f. Maintain discipline in paying back and be accountable for the money spent.
Once you follow the above mentioned steps, you never again have to worry about the debts. Interest that consumer pay on outstanding amount is quite huge. So one should stop paying credit card debt at once and go for a systematic debt relief plan or follow a more systematic usage of this plastic which is now an inseparable item.
Debt settlement is clearly a better alternative than bankruptcy and due to the massive amounts of consumers in debt, creditors are agreeing to very generous debt settlement deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.