Strategies to Get out of Credit Card Debt

Debt is probably ruining your life. You are not alone. Take heart, there are relief options. Americans carry more than $850 billion in credit card debt and this debt impacts the lives of well-meaning people. Debt is a national problem and also an individual one. You try to pay off your credit card debt in full each month, but you rarely succeed. The rising costs of living including unexpected life events and undisciplined spending are some causes of credit card debt. Now that you know the problems, research how credit card debt relief works.


  • Determine the amount of credit card debt you owe. Find a credit card debt relief service that specializes in helping you evaluate your debt to income ratio. This will help get you back on solid financial footing.


  • Establish a plan and start with a budget. You need to have a commitment to helping yourself. Track your money both incoming and outgoing. Study the problem and find the most troublesome area for you. Change your mindset about money and live below your means instead of beyond what you have.


  • Sell assets to pay down your credit card debt. You can earn money on eBay, your local paper classifieds, and yard sales. You may have a closet full of things that you don’t need anymore. Selling them could bring you some extra money to pay off debts.


  • Pay more than the monthly minimum on your credit cards, even if it is only $5.00. Paying more consistently will help you reduce your debt quickly. Pay more toward higher-interest cards first.


  • Shop around for credit card debt reduction services. Look for one with a favorable fee schedule and ask for a breakdown of all the fees involved. Check out the company with the BBB; this is a good way to avoid scams.


Your credit card debt relief plan should include debt negotiation, debt settlement, repayment plans, and debt consolidation.


  • Debt negotiation often results in a new payment plan or paying less than the total amount owed. Credit card companies don’t offer this type of payment plan, but you can seek third party help in negotiating.


  • Debt settlement is also debt negotiation. The debtor and creditor settle on a reduced amount that will be considered as payment in full.


  • Debt consolidation brings all your credit card bills together in one monthly payment. The debt consolidation takes a fee and passes the rest of the money on to creditors. Watch out for an unscrupulous company in this type of plan. The fees can make this type of program prohibitive.


  • Bankruptcy is a way to get yourself out from under crushing card debt. If you cannot make any payment on debts, bankruptcy is imposed by a court order that dissolves or restructures your debt. You will have a bankruptcy mark on your credit for up to 10 years that could substantially cause problems when trying to get credit.


Research the plan that is best for you and stick to it. Make a budget and move on with your life.

IRS Tax Debt Relief Options

Millions of people are suffering from the overwhelming burden and stress of tax debt. Thanks to recent changes in the tax laws the IRS has made it easier to obtain Tax Debt Relief. The new changes for IRS Debt Relief are called the Fresh Start Initiative. Not all citizens qualify for Tax Relief via the Fresh Start Initiative, and the new laws can be very confusing. Though seeking tax debt forgiveness through the Fresh Start Initiative can be helpful, if a person applies incorrectly they can be permanently banned from receiving the benefits of the Fresh Start Initiative, making it imperative that a person hires a qualified tax attorney to assist them in receiving the Tax Debt Relief they wants as regards individual solutions.


Overburdened with IRS tax debtWhether you need to file tax returns for multiple years, arrange some type of a payment resolution, or need to stop pending collection action, there are various IRS debt relief options available to you. Tax professionals can work with you to implement a plan of action that involves preparing all necessary tax returns and negotiating a settlement on the outstanding tax debt. At the same time, we can put a stop to ongoing collection activity and secure a hold on any future action. Speak with one of tax professionals and learn how to take advantage of available IRS debt relief programs.


3 Key Options For People Seeking Tax Relief


Each option available for Tax Debt Relief has particular criteria to be considered for the Fresh Start Initiative. Once a person applies for IRS Debt Relief the IRS has all the information they need to collect on the debt if they do not approve one of the three Fresh Start Initiative options, so it is crucial to ensure your original application is perfectly submitted.


Penalty Relief:


The IRS has a laundry list of categories, sub categories and qualifications to be eligible for debt relief through penalty relief. Some of the basic requirements is that the tax payer needs to show cause of having the tax debt, that they have experienced a loss of income 25% or higher, a loss of job, illness in the family, earn under $200,000 along with many other lesser known conditions. With the numerous options in receiving tax relief, each tax payer must be prepared to submit the best possible package to qualify for tax debt settlement.


Flexible installment agreement:


Another option the IRS has afforded a tax payer for Tax Debt Relief is the Installment Agreement. The installment agreement is for tax payers who cannot afford to pay off their debt in one lump sum. If your Installment Agreement can be accepted, the tax debtor will have a reduction in penalties allowing them to Relieve your debt issues as well as other irs tax problems


Offer in Compromise:


A person can apply for an Offer in Compromise through the Fresh Start Initiative.An “Offer in Compromise” is essentially an agreement made between the IRS and a taxpayer that allows the taxpayer to pay less than the full amount they actually owe. With this type of agreement, the taxpayer can usually choose to make a lump sum tax payment or set up an installment plan. While it might not be for everyone, the Offer in Compromise program has enabled many taxpayers to settle IRS tax debts.


Under the Fresh Start Initiative the IRS has expanded to a larger group of people who could qualify for Tax Debt Relief through an Offer in Comprise. To quote the IRS in regards to people seeking Tax Debt Relief: ”The IRS recognizes many taxpayers are still struggling to pay their bills so the agency has been working on more common-sense changes to the OIC program to more closely reflect real-world situations”. Generally offers will not be accepted if the IRS believes you can pay for the debt, thus making it crucial you hire an experienced and qualified tax debt attorney to prepare your Offer in Compromise allowing you to obtain the Tax Debt Relief you deserve.


Ways To Releive Your IRS Tax Debt


Installment agreement

A monthly payment plan for paying off the IRS. If you think you are a victim of a fraudulent investment scheme , where you have lost all or most of your investment, you may be eligible to take advantage the United States Tax Code (law) to recoup 30% to 40% of your losses. This highly technical and complex process can help you reduce taxes paid in previous years resulting in refund with interest.


Release IRS Wage Garnishment

When you owe Uncle Sam money, the IRS can levy your wages, salary, or federal payments until the levy is released, your tax debt has been fully paid off, or the time expires for legally collecting the tax. There’s room here to bargain for a release or modification to the garnishment if you don’t have enough money to survive with the levy.


Debt Relief Options For Veterans

Debt can be overwhelming, especially during the repayment process, so much so it's often very easy to forget other monthly or annual payments. Getting out of debt can be incredibly hard, even seemingly impossible at times. Though the road to recovery may be long, it is possible to get back on your feet after financial difficulty.


Some heavily indebted individuals have spent imprudently while others are victims of circumstances beyond their control like unemployment, medical emergencies or unforeseen changes in a family situation. Study reveals that members of the military accrue debt at alarming rates when compared to civilians. This debt can endanger service members’ financial lives (and their jobs) if left untouched.

Here are five reasons members of the military tend to fall into debt.


1) Pay is steady but small


“Service members may find themselves in debt for a number of reasons,” said Gerri Detweiler, Director of Consumer Education at “For many, the pay may be steady, but it’s not large, and that means they have to stretch their paychecks quite a bit – especially if they are helping to support a family.”

When military members are forced to squeeze every last dollar out of their paychecks, they might not be able to save enough money for emergencies at home. So if there is a family emergency, they might have to go into debt, which can easily become a downward spiral if it’s not carefully monitored.


2) Frequent moves prove to be expensive


Another reason for debt in the military is needing to move locations often. Frequent moves can add additional expenses and those moves can make it harder for a spouse to hold and advance in a good paying job. As a result, they have to pay mortgages on both their old and new homes in order to maintain good credit, which places an added burden on their financial lives. Debt can start to pile up despite their efforts.


3) Spouse forgets to make a payment during deployment


Deployment makes it difficult to stay out of debt as well. If a service member leaves a spouse at home, he or she will automatically receive all the financial responsibilities while the service member is deployed. If communication fails for some reason, the spouse at home might forget to pay a seemingly innocuous bill. But that missed payment can create larger problems if not taken care of. Because most of the financial pressure is put on the spouse at home, missed payments can lead to more debt.


4) More susceptible to the credit industry


Because of their steady, guaranteed paychecks, military members can get credit more easily and are more likely to be targeted by creditors than civilians. “Additionally, those (military) that do carry credit card debt have higher balances than their civilian counterparts,” said Karen Carlson, Director of Education at InCharge Debt Solutions. “Carrying debt, however, limits a service member’s ability to maximize other military benefits, like the Thrift savings program.”


5) Fear of jeopardizing security clearance


The underlying reason service members stay in debt once they accrue it is fear of losing their security clearance if their superiors find out about their debt. “Unfortunately, members of the military may be afraid to seek out help,” said Detweiler. “I’ve heard from service members who are deeply underwater on their homes, for example, but are afraid to get help for fear of jeopardizing their security clearance.”


So if they don’t acknowledge their debt and seek help for fear of losing their clearance and job, the debt will only continue to increase.


But nonprofit companies such as VeteransPlus and Military Debt Management Agency work to make it possible for military members to put their debt behind them. “A successful military career can lead to a lifetime of financial security if you exercise some of the discipline gained from basic training in your personal finances,” said Carlson. “We encourage service members to get out of debt and stay out of debt, with the help of nonprofit credit counseling.


The two ways to debt relief for Veterans can either be through self guides or professional help.


Self Guide – This entails creating and Sticking to budget


Financial Planning Software


Commercial software, such as Quicken Intuit, can be a very useful tool in budget planning. Sticking to a budget has never been easier, at least in theory. Budget software can track your income and expenses and does so while placing a premium on ease of use and easy to understand breakdowns of where your money is going.


There are also free spreadsheets you can find on the internet that can help you track your money. While they lack the sophistication of commercial software programs, they can be a useful starting point for those who are just beginning to track their spending.


The Old Fashioned Way


While computer software can be enormously useful to enable sticking to a budget, it's not absolutely necessary, and in fact many people prefer to do a budget with pencil and paper so that they can see the entire picture right in front of them. If you're one of these people, you'll need to do more work in keeping your records organized, but if you do so, you'll be fine once you get going.


This sounds easy, but getting over the mental hurdle of starting a budget and the initial energy it takes to track your money is the hardest part. Once you accept that there are absolutely no disadvantages to creating a budget and doing so will make your financial life easier to manage, maintaining your records becomes second nature.


Total Your Income


Take stock of every source of income that you have. If you have a regular paycheck, tally up your monthly take home pay. If you are self employed, be sure to include any income you generate as well as any outside sources of income.


Gather Your Records


After you've taken stock of your income, you'll have to spend a significant amount of time and energy into tracking your expenses. You should begin by tracking regular expenses such as mortgage payments, student loans, utilities, car payments, insurance, child support, and any other obligation that you pay each month. These are considered fixed payments, and most likely will not change much over the long term.


Making A Budget


After you've tallied up your total income and total expenses (this process will take you at least one month), you will immediately see whether your expenses overtake your income and you can begin to make decisions on where to trim the fat.


Sticking to a Budget


Making your budget is time consuming and you may feel as though you're done, but you still have to remain faithful to your budget or your effort will be for nothing. Think of your budget like a diet. You want to stay on it, but if you splurge on one day or in one area it's alright, you'll just have to make up for it in another area.


Professional debt relief solutions include:


Debt Settlement – Also known as debt negotiation or debt resolution, debt settlement involves you or a debt settlement company negotiating lump-sum settlements with your creditors. The object is to decrease the principal you own while also eventually retiring the debt.


Debt Consolidation – Debt consolidation means taking out a loan, which you use to consolidate and pay off all your other debts. The object of debt consolidation is to reduce interest rates and combine all of your debts into one manageable, monthly payment.Finding a Dependable Company. It takes time researching a dependable and experienced debt consolidation company. Look for companies with more than five years of experience.


Debt Management Plan – Unsecured debts such as credit card bills, medical bills, student loans, department store cards and unsecured lines of credit can be handled through a debt management program (DMP). The object is to reduce your monthly payments by getting a reprieve from interest rates, late fees or penalties from your creditors while promising to pay back the full principal over time.


Credit Counseling – Another system of debt management is credit counseling. You work with a credit counseling agency that reviews your budget and helps you evaluate all of your debt relief alternatives.


Many credit counseling services are nonprofit organizations and may provide counseling sessions at no cost. However, some organizations are for-profit companies and do impose fees.


Bankruptcy – These services come with a price because they are complicated and involve plenty of paperwork and terminology most of us are unfamiliar with in our daily lives. Many debtors turn to financial professionals for help with debt — from calling lenders for lower rates, refinancing a home or simply creating a strict budget and sticking to it.


Exploring Debt Relief Options

There are millions of households around the United States that are struggling with mounting debt and unpaid bills. While the economy has recovered significantly since the recession of 2008, for many people in the country, money is still very tight, they find themselves saddled with debt that they cannot pay and there seems to be no relief in prospect.

But this is no reason to get disheartened as there are several debt relief options out there, waiting to be explored. Each of the debt relief options discussed by us has its own advantages and disadvantages. You should select the one that is most suitable for your current circumstances.

Create a Budget and Pay Down the Debt

Monthly Budget WorksheetCollect your financial documents and credit card reports, and find out where you stand. Write down all the balances, interest rates, and monthly amounts due for all debts – credit card debts, auto loans, personal loans, payday loans etc. Make a note of the annual fees on your credit cards. Ignore mortgage loans or student loans for the moment as they have low APRs.

Now take a hard look at your monthly expenses and prepare an income vs. expense statement. Your expenses should include the payments made for rent, mortgage, insurance, utilities, groceries, student loans, and everything you can think of. Subtract your expenses from monthly income and find out how much you’re left with to pay off urgent debts.

Look at cutting unnecessary expenses such as eating out, cable subscription, having coffee everyday at Starbucks and so on. The more money you save, the easier it becomes to pay off existing debt. This takes patience and a plenty of personal sacrifice, but it’d be well worth it when you finally become debt free.


Bankruptcy protection is a unique way to settle your debts, but should only be used as a last resort.  During a bankruptcy Chapter 13 settlement, you pay off your debts through a detailed repayment plan, which protects your assets from getting liquidated. A Chapter 7 bankruptcy ordered by the courts protects several of your assets even as your debts get written off. Bankruptcy is the best long term protection against creditors and debt collectors.

However, bankruptcy adversely affects your credit standing for at least 10 years. Bankruptcy is recommended only if you have a very limited income and huge unsecured debts. So explore other debt relief options first before considering bankruptcy.

Credit Consolidation

Debt consolidation or credit consolidation is one of the most effective debt relief options where lenders transfer all their loans into a single loan. A big low interest loan is then issued by major banks to pay off this consolidated debt. This debt relief option is recommended for those who find themselves owing money to several lenders.

Refinancing the Home Loan

This is one of the most popular debt relief options that involves taking a new loan on your home and using the money to pay off all existing debts. Refinancing the home loans allows you to lower your monthly repayments, make only one repayment, rather than several, lower your interest rate, pay off your debts much faster and it allows you to be in control of your debts, especially credit card debt, rather than get controlled by them.

Debt Relief Agencies and Nonprofits

Most people are not financially savvy and when hit by the burden of debt, they will need help from experts. Debt relief agencies help people manage their finances better, and pay off their debts in a much easier manner.

They help relieve some of the stress involved in repayment of debts by offering professional advice that gets to the core of the issue, helping people understand where they’re going wrong, what needs to be changed, while exploring several debt relief options that might make things easier.

Debt relief experts will have access to knowledge that most people may not have, which helps greatly while deciding on the methods to be used for debt repayment. While most debt relief agencies charge a small payment for their services, there are non-profits that offer these services as well, that don’t charge you any money for their advice.


We hope the advice given here has been useful to you, and given you the information that you were looking for on your debt relief options. Remember, be calm, never be scared by the prospect of debt repayment, there are several excellent options available to you. And never be too shy to ask for professional guidance on the management of your debts.


Debt Relief Laws in the United States

If you’re struggling with a mounting debt burden, it is important to be aware of the important Federal Consumer Debt Relief Laws in the United States that are relevant to your situation. Here, we discuss four of the most important debt relief laws in the country pertaining to Mortgage Debt Relief, Credit Card Debt Relief, Student Loan Debt Relief and IRS Tax Debt Relief.

Mortgage Debt Relief Laws:

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

According to the Mortgage Debt Relief Act introduced in 2007, any debt reduced through mortgage restructuring or any mortgage debt that is written off because of a foreclosure qualifies for tax relief. This means any mortgage debt that has been written off doesn’t have to be reported as income and qualifies for a tax exemption.

The tax exemption limit has been fixed at $2 million. However, the mortgage should be on your principal home and not on a rental or commercial property. This Act was introduced to mitigate the effects of the Subprime Mortgage Crisis that set off such a punishing economic recession in the country.

Credit Card Debt Relief Laws:

Federal Credit Card Debt Relief Act

The U.S. credit card debt per household is estimated to be $15,611 if only indebted households or those households that owe credit card debt are taken into account. Being under credit card debt can be a very stressful experience for most people. Far too often debt relief agencies take advantage of distressed borrowers by charging fees without offering respite of any sort. The government is well aware of this and introduced the Federal Credit Card Debt Relief Act.

While the government cannot offer you financial assistance to help repay your debt, the credit card debt relief laws introduced by the government ensure that debt relief agencies abide by certain important rules.

The debt relief companies are not allowed to collect any fees till they have re-negotiated, settled or reduced the debt amount. At least one of the original terms of payment for the debt should have been changed in favor of the consumer.

There should be a written agreement that clarifies the settlement plan agreed to by both the consumer and the creditor. The consumer can pay only after at one of the payments have been forwarded to the creditor by the debt relief company.

A complete disclosure has to be made by credit card companies during their marketing and they are not allowed to mislead the consumer or misrepresent their services. The final settlement payments will be deposited into a ‘dedicated account’ which is in the name of the consumer. The consumer is allowed to withdraw money from this account anytime.

IRS Tax Debt Relief Laws

The IRS Tax Debt Relief Laws offer relief to those suffering from unusual financial hardships, because of which it might be difficult for them to pay the imposed taxes on time.

One of the solutions offered is to file for a “Not Collectible” status, which would notify the IRS that you’re unable to pay any bills. This stops all collection from the IRS for 10 years and protects you from losing your property or assets in lieu of the unpaid taxes. But you will still receive statements from the IRS that tell you how much you owe.

Another solution offered is to make small monthly payments to the IRS to pay the unpaid tax balance. You can make the payments by check, credit card or bank transfer. However, there will be bth fees and interest levied on the unpaid balance which only grows with time.

Another option is to qualify for an OIC (or offer in compromise). This allows you to pay less to the IRS than the full sum that is owed. It is a lot easier now to apply for an OIC than before and you don’t need a tax preparer’s help to do so. However, very few people can qualify for an OIC.

Student Loan Debt Relief Laws:

The Health Care and Education Reconciliation Act

Known informally as the “Obama student loan forgiveness” plan, this relatively new law aims to make college education affordable to one and all. The Health Care and Education Reconciliation Act relieves a lot of the debt burden on college graduates struggling to repay their student loans.

The law comes in two parts, Income-Based Repayment Plan and Student Loan Forgiveness. According to the Income-based repayment plan, graduates pay no more than 10% of their discretionary income, after having covered basic living expenses such as food and housing. Earlier, the maximum repayment was 15%.

And then, there is the Student Loan Forgiveness part, according to which responsible borrowers who have made regular payments for 20 years can have the rest of the loan forgiven – earlier, this was 25 years. For public service workers – teachers, police officers, military personnel, nurses – loan forgiveness is assured after just 10 years of regular payments.



Steps To A Debt Free Life

We live in an instant gratification world nowadays. This tends to lead some people into the dreaded world of debt.

Money Problems and Instant GratificationIn 2014, the average household credit card debt in the United States exceeded $15,000, and thanks to rising secondary education costs, student loan debt has now become a serious issue in America as well.

What about you? Are you drowning in debt and looking for a way out?

You can become totally debt free by following this proven step by step system. It requires both effort and sacrifice, but if you have the determination and desire to become debt free, this is how to do it.

  • Excluding your house, list all of your debts on a sheet of paper.

  • Next to each debt show the current balance, the monthly payment amount, and the annual percentage rate (APR).

  • Now you will need to sort through the list and determine which debt to pay off first.

  • The smallest balance should be your first priority.

  • The only time you will worry about the interest rate is if there are two debts with similar payoff amounts. In that case you will want to pay off the one with the higher APR first.

  • Now it is time to focus on paying off that first debt.

  • Put any spare change you accumulate into a jar at the end of each day.

  • Cut back on non-essential things whenever you can. The more you're willing to sacrifice, the faster this process will move along.

  • Apply every extra penny that you can to paying off that first debt.

  • When it's time to make the next scheduled payment for that first debt, take all of the money from the Freedom Jar and ADD it to the regular payment amount and send it in.

  • Continue this process until that first debt is paid in full.

  • Once that first debt is eliminated, go back to your list and determine which debt is next to be conquered.

  • Now that you've paid off that first debt, take the money that you used to pay on it and add it to your Freedom Jar each month.

  • Continue this process until your debts are eliminated, one by one.

The purpose of this debt reduction plan is to get you excited and keep you motivated to paying off your debt in a short amount of time. Paying off debt is not only about the math, it's about motivation. When you see your debts disappearing you will feel more in control of your finances and realize your dream of living a debt free life is possible.

Think Debt Relief – Find Debt Relief

Getting out of debt requires your full attention. It takes will power, determination, and above all else, persistance. You have to create a budget and then stick to it. You have to prioritize your debts and eliminate unnecessary expenses wherever possible. Sacrifice will be necessary if you are truley determined to live a debt free life.

Daily Cup of CoffeeMaking sacrifices does not come easy to most people. We work hard to earn a living and we want to enjoy the fruits of our labor. We reward ourselves with various items, such as a daily cup of coffee at Starbucks, a dinner out every Friday night, or perhaps going to the club on Saturday night. We buy ourselves items that we want but don't necessarily need. We buy on impulse without a second thought about how much it will really cost us in the end. If you are ever going to find debt relief, you first must stop going deeper into debt.

Sometimes we just can't avoid incurring new debt …

  • The car breaks down
  • The furnace stops working
  • The roof needs replaced
  • Your child is entering college

However, the majority of the time the new debt is completely avoidable ..

  • You want that big screen TV
  • You want that vacation in Hawaii
  • You want that sleek new car
  • You want that expensive piece of jewelry

It's not just the big ticket items that get us in trouble. All those seemingly insignificat purchases begin to add up fairly quickly. A new pair of shoes, a music CD or video, lunch with the gang at the local Bistro, even that tank of gas that you charged instead of paying cash for begins to increase your debt and reduce your actual buying power.

It's those seemingly insignificant purchases that you need to eliminate if you ever want to get ahead. You would be shocked to see how much money you actually throw away on those types of purchases. Don't believe me? Start keeping a  weekly record of every dollar that you spend. List every purchase that you make, no matter how small. Put all of the receipts into a box and see for yourself just how much "extra money" you really have at your disposal for more important matters, such as getting out of debt.

If you are serious about getting out of debt, you must be vigilant and think debt relief all the time. Before you pull that VISA card out of your wallet, ask yourself, "Do I really NEED this item"? "Will buying this product save me money in the long run or is this just something I WANT, not something that I NEED"?

The same is true for cash purchases too. Before you buy that next pack of cigarettes or that next pair of shoes, ask yourself if you need it or just want it. Once you get into the habit of spending less and saving more, you will be on the right path to freedom from debt.

Got Debt? Ways To Provide Debt Relief In Your Life

With consumer debt at an all time high it is safe to say that most people are looking for a way to ease this financial stress in their life. When a debt becomes too big for someone to handle just through budgeting alone they can seek out other options. Instead of bankruptcy a person can choose to go the route of debt relief. Debt relief is defined as a partial or total forgiveness of one’s debt.

Debt relief dates all the way back to biblical times but it’s never been more important than now. With credit card late fees climbing higher and mortgage interest rates on the rise people’s total debt continually increases. Many consumers find themselves burdened with heavy debt and very little hope in the way of relieving this debt on their own.

There are two popular debt relief strategies that you can implement before your debt gets too out of hand. They are the snowball method and avalanche method. With the snowball method you pay all minimum payments to all debt and then any additional funds go towards the debt with the lowest balance. This gives you immediate gratification once that debt is paid off and motivates you to keep going. The next approach is the avalanche method. This one is where you make additional payments to the debt that has the highest interest rate.

Visa and MastercardCredit card debt relief is a viable option for anyone facing mounting credit card debt. There are a few routes you can take with credit card debt relief. One option is to negotiate with the company to lower your interest rate. This way your debt doesn’t accumulate as quickly and your monthly payment isn’t going to be as high. Now with this option it will help to have a good repayment history and credit score. Another option is to do a balance transfer. If you try to negotiate a lower interest rate and the company won’t budge you can take that balance and transfer it to another card. With this option you would need a good credit score as well.

Some big banks like Wells Fargo offer solutions for people that hold a credit card through them. They realize that people sometimes do suffer from financial hardship and they want to work with you. So the sooner you contact them the better it will be and they can start you on one of the three options they provide.

The three options they offer are short-term and long-term payment options and then also debt counseling referrals. The short-term payment option offers a lower interest rate and possibly a lower minimum payment. The long-term payment option is for customers that require a long term concession. It has a reduced interest rate and a manageable monthly minimum payment. The last option is debt counseling, this is for customers that have multiple debts not just with their bank. They refer you to a qualified not for profit agency.

The last option in credit card debt relief is a debt consolidation loan. A debt consolidation loan is somewhat like a balance transfer for the fact that it allows you to move your high interest credit cards to a lower interest account. However, it is a loan and you may be able to get a better interest rate then you could on any credit card. These loans can be secured or unsecured and you would need good credit for this to be an option. Do keep in mind that obtaining a home equity loan should never be something that you consider. They are secured and you take the risk of being foreclosed on if you get behind in your payments.

If the negotiations don’t or won’t work in your case you can always choose to hire a debt relief agency. But please keep in mind not all debt relief agencies are created equal. You want to make sure they offer appropriate solutions, don’t cost you an arm and a leg, and that they are dependable. Debt relief companies can be a dime a dozen and some are here today and gone tomorrow.

A debt relief agency is defined as anyone who provides bankruptcy assistance to a person for compensation. This description came about because of the Bankruptcy Act of 2005. But not all debt relief agencies handle bankruptcy. There is no test you need to take to become a representative for one of these agencies. That is why it is imperative that you choose well during your search. Some have legal backgrounds and are well versed on the laws whereas some aren’t. So if bankruptcy is the route you are heading it is best to find an actual attorney that specializes in bankruptcy.

There are three types of debt relief options that debt relief agencies, not specializing in bankruptcy, offer. They are debt settlement, debt consolidation loans, and debt management programs. The first two options, debt settlement and debt consolidation loans, can hold significant risk. Steering clear of agencies that offer this is a good rule of thumb. They typically charge hefty fees for these options based on negotiations and administrative duties. Not all creditors will want to participate and these options will more than likely still cause significant damage to your credit rating.

When it comes to choosing a debt relief agency it is best to go with one that offers a debt management program. They tend to be the more reputable agencies. Debt management programs are set up for you make one consolidated payment to the agency each month and in turn they will pay your creditors. But keep in mind that this route definitely requires that you choose wisely. Check with the Better Business Bureau. Looking for a non for profit one is a safer way to go.

Personal Debt Relief On Your Own

There are many different types of personal debt, the most prevalent in recent years being credit card debt. Credit card debt relief can be a complex process, but often means that the indebted person can clear their debts completely without taking drastic measures such as declaring bankruptcy (although in some cases that may be a very viable solution).


Some of the key actions to take when repaying credit card debt are:


  • Keeping up to date on payments. Not missing payments means you are steering clear of having to pay fines and penalties that may be added to your account.

  • Get advice from multiple sources. Try to find advice that suits your needs and stick to a plan.

  • Pay off as much as you can on your card each month. Even if you are just paying off the interest, this means you will not get charged any extra fees and you can slowly start to pay off the total debt.


Although there are many companies that specialize in helping you to get out of credit card debt, it is certainly possible to do it alone with careful financial planning, But simply by looking through your previous statements and outlining your spending habits it is possible to see where you can cut back your spending and put more money aside to pay off your credit card(s).


create a family budgetUsing freely available tools you can create a budget. A budget will help you to focus on your repayments and make it easy to visualize where your money is currently going and make sure it goes where it will do the most good. Specialist companies can do this for you too, but if you feel confident that you can free yourself of debt, this can be a viable alternative.


Self-debt relief requires strong willpower if you are to change your spending habits, so having someone to support you can be a great help. If you don’t have anyone to help you with your debt management, it may be a good idea to get in touch with agencies and services in your area. They will go through all of your options and create a plan that will help you out in the most efficient manner possible.


While credit card debt is an ever increasing problem for many people, unfortunately it is not the only form of debt. It is possible that you could also have debts in the form of overdrafts or loans. While these types of debt can be similar, the way that companies deal with repayment structures can vary greatly. Where a credit card company may allow you to just repay your interest, loan companies will have set re-payments that, in most cases, are not flexible. Loans also often come with hefty fines for missed payments.


Missing a loan payment can be devastating for many reasons. One may find themselves in a situation where they cannot afford the fine for late repayment and will then have to borrow more money from other sources. This is one of the leading reasons of debt problems in the UK and the US and change is actively being fought for. Large financial groups that were set up to protect the consumer are trying to get lending companies to reduce fee’s and even offer payment breaks. This would introduce considerable changes to the way that people can borrow money and enable borrowers to set up a repayment structure more easily.


Not only are consumer groups fighting for change in the lending industry, government sectors are also pushing the idea of much lower interest rates and smaller fee’s for late repayment. Getting trapped in debt is a very serious problem that many people face and sometimes it can come with devastating consequences.

Debt Relief Grants For Individuals

Debt Relief Grants for Individuals


One serious challenge that many in debt continue to face is the huge number of advertisements and websites that promise debt relief grants for individuals offered by the government. Nothing can be further from the truth; grants offered by the government are assistance programs designed to benefit those who are in dire need of such basic things like housing and food. Even so, the set criterion is very stringent that only those who deserve receive such assistance grants.


It is obvious that a financial grant is free money that you do not pay back. The government simply does not have that kind of money to give you to pay off your debt(s). There is simply nothing like debt relief grants offered by the government to benefit you as an individual. This is not to say that there are no grants offered by the government and state governments for individuals.


The government indeed allocates billions of dollars in the form of grants to qualifying individuals. There are indeed over 1,000 grant programs run by the government to benefit different individuals. However, these grants are not designed to be used to pay off debt. They are instead designed to be used in areas of research, development and business start ups.


You can however access debt relief grants for individuals that you can use to pay off your debt(s). You have several options depending on your status.


Non-Governmental Personal Debt Relief Grants


Offered by some non-governmental organizations, these grants are designed to assist those with heavy debt top pay off their debt(s) in order to live a debt-free life. It can however be very difficult to qualify for this grant considering that the said organizations are few and those operating have very stringent qualification criteria. Most beneficiaries happen to be the elderly, war veterans and widows/widowers.


Student Debt Relief Grants


Student DebtThese grants are specially designed to benefit students enrolled in higher learning institutions. The grant is meant to enable you to become eligible to receive student loans. These grants are usually provided by employers intent on attracting talented students who have shown special capabilities in specific areas of industry.


Medical Grant


This is a debt relief grant that you can receive if you happen to have a serious medical condition and you do not have any medical coverage for one reason or another. You must however be a low-income earner to qualify for this type of grant provided by a number of organizations, charities and non-profits.


Home Mortgage Debt Relief


You may qualify for this type of debt relief grant for individuals if you happen to own a home but are in serious debt. This is the only grant provided by the government that you can access as a homeowner and is meant to help you to continue living in your home. It is one of the government’s ways of addressing the current housing crisis.


Accessing debt relief grants for individuals can no doubt be a serious challenge. However, this does not mean that you cannot find an organization or other entity providing debt relief grants for individuals. It all depends on research and your own unique financial position.