Although, credit card debt is less of a problem than it has been in ten years, it is still overwhelming many in the United States. According to the Federal Bureau of Accounting Standards, 2013 offers the best methods to overcome this debt in decades. If you are not aware, many credit card companies are now offering debt management plans. The finance experts from our balance transfer network agree on one thing, getting out of debt is always a good idea, and if you fall behind on payments it can send your interest rates up quick!
Here’s the catch, once you sign up for the management plan, your credit card company may ultimately freeze your credit card account or completely close it. There are other methods that are available to you that will allow you to keep your cards. Consider asking that the creditor move your due date, ask for a reduced interest rate, or pay in one lump sum at a lower amount.
Moving the Due Date
Many credit card companies will allow you to change the due date once a year, and it’s a great option. Especially if you pay most of your obligations in the beginning of the month, change your credit card to the mid-month. You are less likely to receive late or higher interest charges and obviously you are afforded more time.
Reduced Interest Rate
Yes, reducing the rate is possible. Keep in mind you may have to speak with someone that holds some power within the company. However, waiting for a call back and having a stubborn “I won’t take no for an answer” are warranted and worth your time. Also many creditors do not want to lose you anyway. It is as easy as explaining, you are willing to keep the card if the company will work with you, or the other option is cancelling your account.
You can always ask your creditor if they will consider negotiating a reduced payoff amount to settle the debt. Which is a lot better than cancelling the account and paying it off little by little in full.
Bankruptcy should always be your last choice. It affects your credit longevity and makes a difference to our entire economy. Statistics show when thousands file bankruptcy within the same year, that essentially assists in recession and forces creditors to take back property. Bankruptcy also affects vendors, small business owners, parks, zoos and museums.
Credit Counseling – The Best Option
Contact a reputable credit counselor for advice before you do anything. Make sure the counselor is certified and licensed. You want peace of mind concerning your finances. You do not want to speak with someone that will arbitrarily take your money in return for bad advice. A great counselor will explain all your options, rather it is keeping your credit cards or deciding to cancel them. There are many counselors that are non-profits, however, you still want to do your research in deciding what counselor to use. Find an agency that you are able to walk into for an in person interview. Here are a few great choices that are reputable: military bases, credit unions, colleges and universities, and non-profit businesses.
Additional resources to find the best 2013 balance transfer credit cards can be found online via our network of consumer oriented savings websites.