Thursday, December 10, 2009
The five things you need to know about credit card debt elimination Like many people, I've faced the trials of credit card debt elimination, and by the time I finally dug myself out from under a mountain of debt, I'd realized a couple of key facts about eliminating debt. If you're in the same situation, hopefully these tips will help you as much as they did me.
1. Information is power If you don't understand how the credit card industry works, you can't possibly begin to control your debt. Learn everything about credit cards, debt, and the industry in general. My starting place was
Credit Card Whiz Kid [link to www.creditcardwhizkid.com], an amazing site with piles of information on credit cards.
2. Your debt can be reduced Your debt might seem astronomical, but you make some of it vanish with just a few phone calls. Creditors want to get paid back, and if they realize that you're going to default on a loan, they often negotiate a partial repayment rather than lose everything altogether.
3. Credit counselors are a bad idea You do not, repeat NOT, need a credit counselor. The key to credit card debt elimination might involve a consolidation loan, but credit counselors and their ilk often take advantage of your situation to negotiate huge fees for themselves. Also, using a credit counselor may leave a black mark on your credit record.
4. Some mistakes work in your favor If you order your credit report, there's a very good chance you'll find mistakes. Look at those errors carefully! If they're hurting your credit rating get rid of them, but be careful not to challenge errors that are actually helping you out.
5. You are not alone Credit card debt is a massive problem in America. Talk to a financial officer at your local bank and see what you can do about creating a consolidation loan or repayment plan that will work for you and give you the support you need.
Remember, credit card debt elimination is difficult but not impossible -- especially if you keep these five tips in mind!