Seeking debt advice for credit cards is an important first step in any quest to get out of debt. Whether you are planning on achieving debt reduction on your own, through a debt management plan, or by using a professional debt settlement company, PayingPaul.Com is here to help. First, we can match you with credit professionals so you can get free advice on debt from an expert. If you are interested in this, please fill out a form on the left. Secondly, our website is a useful resource for anyone seeking information online about their debt management options (credit counseling and debt negotiation in particular), the best approach to dealing with bad or old debt, and what companies to work with.
Debt Reduction - Do It Yourself
- Budget - The simplest and yet most powerful advice for debt problems is to start budgeting. A simple concept, budgeting is a clear plan or list of expenses and income. The goal is to match income and expenses so one does not overspend, which is one of the leading ways that consumers fall into debt trouble to begin with. Ultimately, this requires self-discipline on the part of the consumer.
- Pay More Than The Minimum - The easiest way to reduce your credit card debt is by paying more than the minimum monthly payment. If your monthly payments are too high, then you should seek out debt help.
Borrowing From Your 401(K) For Financial Help
Another option that some people consider is borrowing from their 401(k) to pay off their credit cards. On the surface this option makes a lot of sense, especially in light of the high interest one can pay on their unsecured debts. However, like the other options available, there are serious downsides that one must consider prior to doing this.- First and most importantly, you are taking money out of your retirement plan, which is never recommended because you aren’t earning interest on it.
- If you leave your job or are fired, you have to repay the entire outstanding balance in 60 days or face a huge tax bill. Assuming you have been let ago and are unemployed, this can be a difficult task without income. If you are unable to pay it back in full, the balance that is left is charged a 10% early withdrawal penalty, leaving you with a larger federal and state income tax bill in the end.
Advice On Using Debt Settlement
When seeking debt management advice one will typically learn about a new and increasingly popular method for getting out of debt called debt settlement. Also known as debt negotiation, debt settlement services are the fastest way to pay off debt without filing personal bankruptcy. Through settlement programs, one can dramatically reduce their monthly payment, their overall credit card balances, and the timeline for becoming debt free. To get debt settlement advice from a pre-qualified provider, please feel free to fill out a form on the left.
Other tips:
- Finding the right company is as important as determining whether debt negotiation is the right solution altogether. Do your research on any company you choose, or use PayingPaul.Com to get matched with a pre-qualified provider.
- If you can afford to reduce your credit card debt by paying more than minimum, debt settlement may not be the right choice for you. It is an aggressive approach to debt reduction that is optimal for consumers who owe a lot and are experiencing a financial hardship.
Consumer Credit Counseling Assistance
Another form of debt management that is available for consumers with credit cards is Consumer Credit Counseling. In these types of programs the client makes one simple consolidated payment to a non-profit debt relief company, who in turn, disburses the funds to each of the creditors. By enrolling in this type of service, consumers can enjoy interest rate reductions, waived late fees, and a shortened timeline for becoming debt free. The average program is between four and five years in length.
Are you interested in speaking with a consultant about the pros and cons of your debt relief options? Fill out a form and PayingPaul.Com will put you in touch with a leading provider today!