Financial Web Guide

When struggling with credit card debt, some people pretend they are ostriches and simply stick their head in the sand. However, getting free from such unsecured credit card debt is possible. Here are four steps which require quite possibly the most challenging of all character traits – patience.

1. Contact your lender(s) – Beginning with this step will help you know how cooperative your lender will be during the process. You most likely will be contacting more than one lender, i.e. multiple credit cards, multiple department store credit cards, etc. So, the easiest thing would be to create a spreadsheet in Excel which lays out each lender, their contact information, the total amount you owe, when payments are due and how much each payment is. As you speak to them, tell them if you have lost your job, lost income or are facing some other financial struggle. Your lender should be willing to work with you, but if they are not, then you know you may need more drastic measures.

2. Fight to get your debt forgiven – Credit card companies are accepting pennies on the dollar these days for various debts because many of them need cash. You can use this to your advantage by trying to negotiate with the credit card companies to lower your overall debt. You will have to close the account, and you may take a hit on your credit report, but it could be worth it if you can lower your debt by 40 percent or 50 percent.

3. Prioritize each debt – Only you know which debts are the most important, which is why you have to make a list of priorities. Many sources and debt settlement companies have differing advice on this subject. Some suggest you should focus first on paying off the smallest debt, others suggest using a debt consolidation company to combine all of the debts. However, if you keep each debt separate, you should make a list of who you want to pay off first and pay each off in order.

4. Get professional assistance with Debt Settlement- One of the challenges of negotiating with lenders and organizing all of your debts is that you may not know exactly how to handle things. Financial professionals such as financial planners and debt relief organizations such as a debt settlement company may provide some value as you seek to get debt free. A debt settlement company could provide you with a way to pay off all of your debts by cutting the debts in half or more, and a financial planner could help you organize all of your bills, debts and income so that it makes sense.

Overall, if you are willing to be honest with yourself, face down your debt problems and utilize a professional if necessary, you can be free from unsecured debt in just a few years, instead of carrying monstrous debt for a decade. J Chase is a debt settlement professional. He is affiliated with a national debt settlement company which has helped 1000′s of people eliminate their debt effectively. He has extensive knowledge of the internal and national debt settlement programs. For more information visit

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