How to Stop Paying Credit Card Companies

Anyone who is up to their ears in debt knows paying credit card companies each month can get tiring. if If you stop paying the wrong way, you could end up getting sued. Your credit score could drop significantly because of charged-off accounts or accounts in collections. However, if you stop paying credit card companies the right way, you won't suffer as many negative repercussions.

Instructions

1

Use a debt settlement company. In exchange for a negotiated one-time payment, usually between 25 to 75 percent of what you owe, creditors will forgive the rest of your debt and report it to the credit bureaus as settled.

You won't have to make any more payments to the credit card companies after that, but you may have to pay fees to the debt settlement agency. Contact companies like Care One or Debt Consolidation Care and ask questions about how they can help your situation and what fees they charge.

2

Declare Bankruptcy. Because bankruptcy will stay on your credit report for seven years, many people advise trying other alternatives before declaring bankruptcy. However, in some cases, bankruptcy is the still the best option. Go through some pre-bankruptcy counseling to make sure you're making the right choice. Then, research and hire a good bankruptcy lawyer to guide you through the rest of the process.

3

Consolidate with a loan from your bank. You can get a loan from your bank with a much lower interest rate than your credit cards. If you get approved for a decent amount, you can then use that loan to pay off your credit cards. You will then have to pay back the loan, but you'll be paying the bank instead of the credit cards companies.

You may be able to get the loan paid off faster than you would have paid the credit cards. Go to your banking institution and inquire about a debt consolidation loan. According to Fool.com, you can take advantage of many promotional offers from banks enticing you to use their line of credit. It could mean substantial savings for you.