How to Eliminate Credit Card Debt Legally and Ethically

Eliminating credit card debt legally and ethically could provide you with peace of mind. A sound payment strategy could end calls from debt collectors, improve your finances and and possibly raise your credit score. Many strategies are available for this, but you should choose carefully to pick the best program for you. Patience and commitment will be necessary as well. Credit card debt can be accumulated very quickly, but eliminating the debt can take much longer.

Instructions

1

Enroll in a financial literacy class to receive a complete overview of credit management, including the legal and ethical elimination of credit card debt. These classes, which are often free, will empower you to take control over your finances and manage your credit card debt reduction on your own. Find out about classes in your area by contacting a nonprofit credit counselor such as those affiliated with Consumer Credit Counseling Service. Ask your bank or credit union for a referral to a counselor in your area.

2

Meet one-on-one with a credit counselor if no classes are available or if you prefer personal instruction. Ask the counselor about all legal and ethical ways to eliminate credit card debt, including lump-sum payments, debt management plans, debt settlement and bankruptcy. Debt management plans are usually directed by counseling agencies. The agency reviews your income and expenses, helps you structure a budget and then pays all your bills each month. You must send send the agency a lump-sum check each month and agree to remain in the program for about four years. During that time the counseling agency will negotiate with your credit card company for lower interest rates and even a reversal of some finance charges and fees. The goal is for you to eliminate or significantly reduce your credit card during the four years. You can also contact card companies on your own and self-manage this program. Debt settlement allows you to resolve credit card debt by paying less than the full balance. The Federal Trade Commission recommends that you direct your own debt settlement and stay away from for-profit firms.

3

See a bankruptcy attorney if your credit card debt appears to be really overwhelming. Many bankruptcy attorneys offer free initial consultations. Use that to your advantage by visiting with two or three while not making a commitment or signing any agreements. Use the meetings as another way of learning about all your various options.

4

Choose the debt reduction strategy best suited for your needs. Then begin paying off your credit card debt legally and ethically.