To eliminate credit card debt, consumers coast to coast are leaving no stones unturned and they are even toying with out of the box solutions.
The economic recession has brought in the need for debt relief as many of them had been left with piled up debts.
A strategy that worked with one consumer may not be suitable for the other and each one of them has to think of debt relief in his or her own way by identifying different upfront alternatives.
The system of credit rating has changed in the present times and it is better to leave your old credit account open instead of closing it.
Termination of old accounts is not a good idea when you want to eliminate credit card debt.
If you close down an old credit account the credit left at your disposal will be severely impaired and the balance will have no effect on your credit rating at all.
Close old accounts only if counselor tells you Primarily, your aim would be to eliminate the outstanding debt in your credit card.
Many people go for another easy option of declaring themselves bankrupt which could again pose problems.
If you throw in the towel without checking out other options like going to a credit card counselor and looking for help, you could be missing out on many opportunities.
But you could settle for the option of closing your account only if your credit counselor asks you to.
Filing for bankruptcy can end the show before it all began and is not the best way to get debt relief.
You won't be able to get your credit score back on once again.
You would be denied fresh loans and even if you manage to get them, the interest rates would be much higher than the market rate.
You will be exposed to lenders who would keep charging you high rates of interest making it impossible to eliminate credit card debt even in the long run.