Options
Debt Relief Program
Debt relief program, or debt negotiation, sometimes the process of negotiating with a creditor or debt collector to pay less than the full amount owed. By paying less than the full balance you owe on an account to satisfy the debt
Skilled strategists and negotiators are working on your behalf. Provide immediate payment relief. Be free of enrolled debt in under 4 years
Prevents the use of enrolled credit cards. Could adversely affect your credit worthiness. May temporarily increase the amount owed due to the accrual of fees and interest
Bankruptcy
A legal process. All your assets are evaluated and used to pay off your debts. Chapter 7 and Chapter 13 are most common options used by individuals circumstances, once bankruptcy is complete, you are relieved of the debt obligations you had before filing bankruptcy
Debt obligation could be cleared. Most creditors are barred from attempting to collect on debts. Under some circumstances, process takes only 3-6 months
Significant, long-term damage to credit. Loss of all credit cards. Chapter 7 can be difficult to qualify for
Minimum Payments
Making the minimum payments on your credit cards is a strategy that merely prolongs your debt. Minimum payments should only be used as a temporary strategy to pay off your credit card debt you are able to become debt free in a shorter period
Consistent monthly payments. Gradually reducing debt. No negative impact on your credit
High monthly payments. High-interest rates. High levels of debt can hurt your credit over time. Very long pay off time frame. Could pay 2 to 3 times the amount originally charged