Credit Card Debt Relief

You often fantasize about winning the lottery and what you would do with your earnings. Is paying off your credit cards and other debt one of the first things that come to mind? Well, the good news is you do not need to hit the lottery to have credit card debt relief. In fact, there are several credit relief programs that can help you with your personal situation.

For whatever reason you reached this level of debt, there is light at the end of the tunnel. Even if you maxed out your credit cards years ago and have yet to pay more than the minimum payment, you have options. It does not matter if you used the money for frivolous spending that was beyond your means, or for serious emergencies you could not afford at the time; you owe a lot of money.

Before you jump online and search for credit card debt relief, you should be aware there are many scams out there. You may have seen an advertisement for a debt settlement company that promises to eliminate your credit card debt for pennies on the dollar. Remember, if it seems too good to be true, then it probably is!

There are several red flags to look for before you sign with the first debt settlement company you see. Avoid signing up with a debt settlement company that has empty solutions, including:

  • Guarantees to settle your credit card debt for 30-60% less than what you owe
  • Fees requested upfront before any of your debts have been settled (this is illegal under the FTC’s Telemarketing Sales Rule; you should not have to pay anything upfront until the debt settlement company works for you first!)
  • Brags of a new government program that offers bailout money for credit card debt relief
  • Tells you to stop communicating with your creditors, without explaining the details and consequences (when you stop paying a creditor in order to pay a debt collector, it will affect your credit report negatively; the creditors will then start calling and demanding payment. They may even sue you. If they win in court, your wages can be garnished. Other consequences may include putting a lien on your home.)
  • Promises to stop all of your debt collection calls and lawsuits
  • Assures you that your unsecured debts can be paid off for just pennies on the dollar

You should be aware that many people who enroll in debt settlement programs often drop out before any credit card debt relief is reached. Many companies want you to put monthly payments into a separate checking or savings account, for up to 36 months, until the debt is paid off. If you miss a payment, you will have consequences, which may lead to more debt, based on interest and fees. This will affect your credit report in a negative manner, while debt collectors still harass you with daily phone calls.

You need to do some extensive research in order to have credit card debt relief. Instead of signing with a scammer that will cost you hundreds to thousands of dollars, you want to make sure you are working with a legitimate company; that way, the same money can go to paying off your debt. You can discover complaints against companies by consulting with the state Attorney General and local consumer protection agency. Further, you need to make sure that an online company is licensed to work within your state.

If you do not want to contact these reliable sources, or are not sure how to get in contact with them, there is another way to find information. You can type the debt settlement company name along with the word “complaints” or “scam” into a search engine, and read the reviews of people who have tried the company. There may be news stories regarding lawsuits, deceptive behavior, or unfair practices based on state and federal regulations.

Ideally, the best way to achieve credit card debt relief is through the use of an attorney. When you hire a lawyer that has experience in bankruptcy and other related matters, they will take care of everything for you. If you do not have the time or enough confidence to find a proper debt settlement company on your own, your attorney will do it for you. You can have peace of mind knowing it is not a scam, and you are that much closer to credit card debt relief.