Acquiring a large amount of debt is burdensome. Because of high monthly
payments, many people are unable to make minimum payments. Failure to
pay credit cards results in late fees and higher interest payments.
Although skipping credit card payments may be tempting, this does not
eliminate the problem. In fact, this makes the situation worse.
Getting Control of High Credit Card Balances
Eliminating debt is the only solution for gaining control of your high
balance credit cards. Individuals with low credit card balances are
generally able to handle monthly payments. Moreover, these people may pay
more than the monthly minimum. Thus, they have the opportunity to
reduce, and ultimately eliminate debt.
Of course, if you are barely paying the minimum balance, which is
usually the finance charges, your credit card balance may only drop a couple
of dollars a month. In some cases, your balance may increase. This
occurs when your finance charges are more than the monthly minimum.
Beware of Debt Elimination Scams
Many companies advertise debt elimination solutions. Perhaps you have
seen grant programs advertising free money to pay bills. While these ads
appear tempting, it is important to realize that getting a grant to
start a business requires patience and effort. With this said, getting a
grant or free money to pay bills is impossible.
Another common debt elimination scam involves companies claiming that
they can eliminate your debt legally. According to these organizations,
credit card companies, mortgage companies, and banks charge interest
and other fees illegally. Thus, you are waived of your obligation to
repay debts by looking for loopholes.
After you pay the debt elimination company a typical fee of $2,000, you
are sent a document to present to your creditors. Supposedly, this
document releases you from repaying debt. Document titles may read, "Bond
for Discharge of Debt," "Bill of Exchange," and "Redemption
Certificate." Do not fall for this scam. The documents are fake. Sadly, after a
person gives the debt elimination company thousands of dollars, they are
still required to repay debts.
Here are our Recommended Debt Consolidation Companies Online.
Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.