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Debt Management Law News

June 29, 2010

What are other options to bankruptcy to get your debt restructured, especially heavy credit card debt?

You can consolidate all you want and pay money to a company that offers to reduce your debt… chances are you will still owe it and be out of a lot of money you could have used paying down your debt.

Things you can do:

Cut them Up… dont cancel them… just stop using them NOW.

Call each of your Credit Card Accounts and explain to them that you are in financial difficulties and could they please accept lower payments and could the APR please be reduced to ZERO so that you can catch up?

If you don’t want to call them and want to deal with it the tough way:

Take all your Credit Card Statements and find the one that has the highest outstanding balance and highest interest. You will send twice the min. payment every month to that account.
All other cards get the min. payment requested.

Once you have that card paid off apply the now “freed up” money to the next card and pay the min you pay on that card plus the “freed up” money you used to send to Card No. 1.

Once you are past your first and second card this will get a lot easier.
You will still spend the same amount every month on paying off your cards (do not reduce it… just aply the remainder on to the next card).
and the balances will drop faster and faster.

When you are done… transfer your “monthly credit card payments” to a savings account and accumulate enough money to pay for 6 months worth of living expenses….

After that… it is up to you. By now you should be such a serious saver that you will crinche on wasting money and probably keep going with the savings.

www.business-on.info

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242


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