Debt Relief FAQ

What is debt relief?

Credit card companies offer a variety of solutions for those individuals facing a great deal of credit card debt. Many of these options allow for a reduction of monthly payments, lower fees and reduced annual percentage rates. Programs that offer such solutions fall into the category of debt relief, a process by which consumers facing excessive credit card debt can either negotiate or settle their debt in order to pay off their balance quicker and reduce their monthly fees.

What can be done to resolve excessive credit card debt?

Several options are available for people facing a large amount of credit card debt, and you may consider one or many of these options if you are facing an overwhelming credit card balance and wish to experience debt relief. One option is to negotiate a reduction in your annual percentage rate (APR), which is the percentage of your balance that is taken from your payments as a fee and does not include your principal balance, or the amount you owe as a direct result of purchases or withdrawals. By lowering your APR, may also receive lower monthly payments, allowing you to pay off your credit card debt quicker. You may negotiate your APR by contacting your credit card company directly and inquiring whether or not you qualify for a reduction. Several credit card companies have departments that deal exclusively with debt relief for those experiencing overwhelming credit card debt, while other companies offer to settle debt relief issues using online methods, such as website applications or email.

What's the most successful debt relief strategy?

One option for approaching credit card debt is debt settlement or debt negotiation, a process in which the creditor and debtor reach an agreement regarding a reduced balance that will be considered as payment in full. Individuals able to pay off most but not all or their credit card debt may find this option the most effective form of debt relief. In some cases, an attorney may be required. In other cases, individuals may be able to reach an agreement regarding settlement of their credit card debt without the assistance of a lawyer. Some creditors may allow individuals facing excessive credit card debt to settle on a reduced balance or lower monthly payment if the debtor is able to make the consistent minimum monthly payments agreed upon between them and the credit card company. This is an effective form of debt relief for those individuals facing a large amount of credit card debt but who possess the ability to make consistent monthly payments. Programs of this type are often contingent on whether or not a debtor is able to maintain the terms of their specific debt relief plan, and a missed payment may result in disqualification of this type of program.

What happens if someone cannot pay off their credit card debt?

If someone is facing excessive APRs and high monthly payments, their account (or accounts) may go into default as a result of nonpayment due to overwhelming credit card debt. If this occurs, an individual may be forced to declare bankruptcy and credit card companies may forgive some or all of an individual's credit card debt. Bankruptcy should not be viewed as a legitimate method of debt relief, and should be reserved as a last option for those facing serious amounts of credit card debt. Bankruptcy will eliminate much or all of one's credit card debt, but ruin credit ratings for up to a decade and jeopardize personal property or income strains.

• Debt Experiences - Read some personal stories of how various consumer realized they were in too deep with debt. They tell of their struggles and harships they went through on their way to debt troubles. Warning some of these experiences might hit a little too close to home.

The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it's nearly unbearable. You struggle along while your creditors are turning up the heat. And now you're at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.

Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?

Avoid Bankruptcy

Debt Relief

Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection.

Are your finances spiraling out of control? Get the information you need today to stop harassing creditor's phone calls. Total Debt Relief provides a matching service to connect you with pre-screened Debt Settlement Professionals. These debt management pros will educate you on all of the options available to you to get out of debt. Total Debt Relief helps you make the most informed decision possible so that you can get your financial life back on track.