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Pay Down Credit Card Debt: Where To Look For Help
Having a mount of credit card debt can be a nightmare. The phone rings, no caller ID comes up, and one begins to feel sick to their stomach and wonder how things ever got so bad. Luckily for those seeking an honest way to pay down credit card debt, there are organizations capable of lending a helping hand. Knowing what to look for and where to begin looking are another matter completely.
The first place to look might very well be with the debt collectors themselves. While these individuals have a reputation as heartless, the truth is that they are nothing more than people trying to do their job. It helps to understand their limitations as set forth by the Fair Debt Collection Practices Act (FDCPA) in order to know their boundaries. It also helps to understand what motivates them to settle for lower amounts than originally owed. Typically debt collectors want to settle in cases where the chances of them collecting the full amount is unlikely.
While the FDCPA is a complicated act, there are many provisions that can also be easily violated by an overzealous collector. Documenting such occurrences could be very useful if one can find an attorney willing to take the case as the results may be having the debt expunged as well as an award of some kind. It is also worth noting that many debt collecting firms are highly motivated to reach a settlement out of court rather than risk a judgment against them.
For those unable or unwilling to negotiate debt on their own there are firms that will handle this process. Many debt negotiators will help those seeking to pay down credit card debt and potentially loans and/or mortgages determine what they owe and what they can reasonably pay immediately and over the next few years. Using this information the debt negotiator will contact creditors and attempt to renegotiate or restructure the debt.
In many cases where consumers have a card with a substantial amount past due, they may not be paying it at all. The creditor would obviously prefer something to nothing, and if that means accepting a payment plan that lasts years instead of months in exchange for a few percent then that may be a possibility. While this may seem like a potentially small step, there is an old Chinese proverb that applies: even the longest journey begins with a single step.
Getting a second (or third, or forth) job may be an option for some, but not all. If, after an honest self-evaluation, the problem is such that one’s money simply burns a hole in their pocket, then additional jobs are probably not the answer. If one cannot save money, consider handing it over to a parent or relative that can for assistance. It may also be worth asking family members to help with the debt as they are unlikely to charge interest and late penalty fees.
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