How to Get Rid of Your Credit Card Debt Without a Settlement Company

While some debt settlement companies may actually help you get out of debt, many charge high fees and cannot deliver on their promises. If you want to reduce your debt without the help of a settlement company, you do have a few options. The best path for you may vary depending on the depth of your financial situation. For example, if you are in good financial health and simply want to reduce your balances, the way you structure your payments may be your best option. If you cannot afford to make even your minimums, you may prefer to consider bankruptcy.

Instructions

1

Make larger payments. If you can afford to make more payments to your credit card debt, this is the simplest and most cost-effective way to get rid of your debt. By paying as much as you can, you will retire the debt more rapidly, and your total interest cost will also decline. By paying only the minimum amount due on your credit card, it can take years of time and interest to pay off a debt that you may be able to get rid of in a short time with slightly larger payments.

2

Consolidate at a lower interest rate. The higher the interest rate you pay on your credit card debt, the longer it will take to get rid of it. If you can find another credit card or other lender that will offer you a loan at a lower interest rate, it will allow you to get rid of your debt faster, even with the same monthly payment.

3

Negotiate with your credit card companies directly. Although many companies will be reluctant to lower your interest rates or balance due if you have been paying on time, if you are already behind in your payments they may be more open to suggestion. If your creditors fear that you will ultimately be unable to afford any payment at all, they may be willing to strike a compromise and allow you to get rid of your debt with smaller payments, particularly if they are in the form of an upfront lump sum. In order for this strategy to work, you must verify that you have enough money in your budget to provide the requested payment.

4

File bankruptcy. If you cannot afford to make your payments, you can file bankruptcy and likely get a discharge of all of your credit card debt. A Chapter 13 bankruptcy will often allow you to reduce the amount of your monthly payment to creditors, with the release of any unpaid debts at the end of your case. Chapter 7 allows you to get rid of your debt without monthly payments, although it could result in the court taking and selling some of your property. In either case, your credit card debt typically qualifies for discharge, freeing you from any obligation to pay it.