How credit card debt forgiveness can help you avoid bankruptcy
The inflationary economic environment has weighed heavily on many Americans over the past couple of years. In fact, inflation become so problematic following the COVID-19 pandemic that the Federal Reserve decided to increase interest rates several times - a move that made it even more difficult for those already struggling to make ends meet. That's because higher interest rates usually result in higher minimum payments payments on variable-rate debts - like credit cards and personal loans.
If you're struggling with credit card debt, you could be at your wit's end and ready to contact a bankruptcy attorney to put your debts behind you. But, you might have another option. Credit card debt forgiveness programs can help you get out of debt and find your way to a more solid financial foundation without having to file bankruptcy.
How credit card debt forgiveness can help you avoid bankruptcy
Credit card debt forgiveness programs work with your lenders on your behalf. Their ultimate goal is to negotiate lower principal balances with your lenders, getting them to accept less than you owe to pay off your debt and forgive the difference. This can help you avoid bankruptcy in several ways:
It can reduce your principal balances
If the credit card debt forgiveness service you use is successful in negotiations, you won't have to pay all of your debt off. If the credit card companies you owe money to forgive a significant portion of your balance, it may provide enough relief for you to get out of debt without having to file bankruptcy.
Find out how much you could save with credit card debt forgiveness today.
It can help make your payments more manageable
When you enroll in a credit card debt forgiveness program, one of the first things you'll do is talk to an expert about your income, debts and other expenses. Next, you'll work with your debt relief expert to determine a monthly payment that you can afford to make each month.
Since the debt forgiveness company is working to settle your debts for less than you owe, you may qualify for a significant reduction in your monthly minimum payment obligations. This could be the financial relief you need to avoid bankruptcy.
It can help you get out of debt in a reasonable amount of time
One of the biggest reasons consumers file bankruptcy is because they don't expect to pay their debts off in a reasonable amount of time. "If a person is not able to absolve the debt (through settlement or consolidation) within a 36-month period with lower monthly payments, then filing for bankruptcy may be the best option," Brandon Robinson, president and founder of JBR Associates, recently told CBS News.
The good news is that credit card debt forgiveness programs may be able to get you out of debt inside that timeframe. In fact, Freedom Debt Relief, a leading debt relief company, says that credit card debt forgiveness programs typically take anywhere from 24 to 48 months to complete.
How to get the debt relief you deserve
Credit card debt forgiveness is relatively easy to tap into, especially if you're living through financial hardship. Follow the steps below to get started:
- Get to know your debts: List your debts in order from highest interest to lowest. Make sure to include the lender, interest rate and monthly minimum payment for each. Next, add your minimum payments together to determine your total overall monthly payment.
- Get to know your budget: Make a list of your expenses. These should include rent or mortgage, utilities, auto loans, insurance premiums, food, medical expenses and any other expense you cover on a regular basis.
- Consider your income: Now, compare your income to your expenses for a better understanding of what you can afford to pay toward your debts each month.
- Contact a debt forgiveness provider: Call a debt relief provider and discuss your options.
The bottom line
If you're considering bankruptcy, you may have another option. Credit card debt forgiveness has given countless consumers an alternative to bankruptcy. Get in touch with a debt relief expert to find out if you qualify for credit card debt forgiveness now.
