Now, and I mean right now, is the best time to seek credit card forgiveness. Never before in the history of finances have lenders been so willing to bend. Who would have imagined, twenty years ago that you could call up your lender and tell them you want a rate adjustment on your home loan or you’ll quit making payments? Bite Me. Golly, that must feel really good after years and years of financial slavery.
The same holds true for credit card debt only it’s not nearly as complicated. Think about your current credit card debt. Let’s take a very plausible example of what many people may be facing.
Let’s say you have a current debt on a single credit card that has a balance of $ 8900 with an interest rate of 23%.
Do you have any idea how long you will be paying that bill? Any guesses?
Try this for size… at a minimum payment of $ 348, it will take 212 months to finally pay this off. Nearly 18 years!
Any guesses as to the total payments? If you haven’t fainted yet, take a deep breath because after 17.6 years you will have paid over $ 17,292.
Yeah, the term “Bite Me” comes to mind.
Think back, if you can remember and imagine what you bought to rack up a credit card debt of $ 8900. Toys for the kids. Maybe a new dress or maybe you took that vacation you always imagined. Maybe it was groceries or maybe you were using credit to make a house payment.
Hey, we do what we have to do. Right? But do you have to live in slavery forever?
Does it make any real sense to carry this kind of debt? I imagine not and would wager that since most households have several credit cards, $ 8900 is a fraction of the burden most families are carrying.
So what do you do? How do you erase this type of credit card debt?
There are several choices and some or none may be right for you. I discuss many of them on this website. but I’ll give you an overview of what you may be able to do.
1. You continue to pay, but increase your payments because the formula for the time value of debt is working against you. Don’t be late because late fees only add to your mounting debt.
2. Call your lender and ask for a reduced interest rate so you can properly debt service this account. This way, more of your monthly payments will go toward reducing the principal instead of interest.
3. Decide to settle for less than you owe. This is a strategy that takes nerve and resolve, but there is a definite strategy and plan for making this happen. You’ll need to read about it. Visit CreditCard Forgiveness Site and decide if this is for you.
You might ask the question about your credit score? How will I live without a credit card? Is the debt settled and I just walk away?
Expect to take a hit on your credit score, but also expect to raise your score once the debt is gone.
And regarding the plastic, shouldn’t everybody be without a credit card? Imagine how low interest rates would be if everyone turned in their credit card. At this writing the Prime Rate is 3% and the banks are borrowing money at about 1%. Ask yourself how they justify charging 23%.
If you decide to settle your card debt for less than you owe, you are in fact done with the credit card company. You will however, owe taxes as the IRS considers forgiven debt to be income.
As always, consult an attorney and an accountant when making financial decisions. The writer is neither of these.
By PublicDomainPictures from Pixabay