Getting Out of Credit Card Debt

Finding yourself buried in credit card debt can be overwhelming and even a bit frightening. Will you ever get out of this debt? How much money will you lose in the process because of finance charges? Will you have to file bankruptcy? Luckily, there are a few simple things you can do to get yourself out of debt and to stay there.

Be Disciplined

Remember, getting out of credit card debt starts with you. Therefore, you need to be disciplined enough to set a goal and work toward it. Take a financial appraisal of your current expenses and your earnings. Make a list of all of your monthly expenses, such as utility payments and house payments. Then, make another list of your other regular expenses, such as food, education, health care, and clothing. From here, you can determine how much money you can afford to send to your credit card each month. Be disciplined enough to send this amount of money to the credit card every month even if you get an invitation from the credit card company to pass on making a monthly payment.

You might find it helpful to contact a debt counselor to provide you with advice for your financial planning. There are numerous non-profit credit counseling agencies that will provide you with the assistance you need. If an agency requests that you pay a fee, even if the payment is voluntary, look for a different agency to work with. Those that seek payment are unscrupulous and will not provide you with proper help. Instead, they are simply looking to line their wallets at your expense.

In cooperation with the credit counseling agency, you might set up a debt management plan. With this plan, you will pay a specific amount of money every month to the credit counseling agency. The agency will then make the necessary payments to your creditors to start working toward getting you out of debt. Most of these plans take about four years to complete.

Work with Your Creditors

If you find yourself in overwhelming debt, you need to resist the temptation to run from your creditors. Rather, talk to your creditors and explain the difficulties you are having with making your payments. Ask your creditors if they can make modifications to your payment plan so your payments can be reduced and be more manageable. Once you have worked out a plan, stick to it!

Know Your Rights

When push comes to shove, it is also important for you to know your rights in regard to credit card debt. According to the Fair Debt Collection Practices Act, which is a federal law, there are limitations to how a creditor can contact you in order to collect on your debt. To summarize, the act states that debt collectors:

- Cannot call you before 8:00 am or after 9:00 pm

- Cannot call you at work, particularly if you are not allowed outside phone calls

- Cannot harass you, lie to you, or use unnecessary measures to collect the money you own

- Must honor your written request to cease further communication

By knowing your rights and responsibilities, you will soon find yourself out of dept and on the path toward financial freedom you have been yearning for.