How can it be done?

Let me share with you 10 practical steps which you can adopt:

Step 1: List down your debts one by one

Most of the Americans have 3-4 credit cards on hand. Before applying for a new card, you need to find out your total debt. In order to have a clearer view, you are advised to list down the outstanding balances for each card one by one. This is the very first step you should take to move towards debt free.

Step 2: Knowing your debts in detailed

You are reminded to list down the interest rates and late fee charges for each card too. You must make sure you know all the details of your debts before taking further action. Some credit card providers do not allow the cardholders to transfer their balances within certain period.

Step 3: Search for a zero balance credit card

After knowing the total amount of debt, you can then proceed to find a new card which allows you to transfer all your outstanding balances. You need to contact the card providers to find out the credit limit. It is important for you to confirm whether the credit limit offered is enough to cover your total debt. If it is not enough, you need to find out whether it is worthwhile for you to transfer partial of your debt.

Step 4: Find out whether there is any fee associated with the card

Some card providers in the market do charge upfront fee at the time of transfer. Some may waive the fee during introductory period. Hence, you need to find out whether there is any additional cost you need to bear.

Step 5: Read the terms and conditions carefully before transferring your balances

Many zero balance transfer credit cards will charge extremely high late fees if the card users delay their payments. Before taking up the card, you are reminded to get all the terms and conditions clear.

Eliminating debt is a challenging process but you are encouraged to “enjoy” the process. Although it might be very stressful for you to bear heavy financial burden, you are reminded not to be depressed.

Step 6: Work out a realistic budget plan

Have you got a budget plan with you? If no – start working out one based on your monthly income and expenditure. Make sure you have sufficient fund to pay off your monthly payment.

Step 7: Pay more than the monthly minimum payment

If possible, try to cut down some of the unnecessary expenses so that you can raise more cash to pay your debt. If possible, pay more than the monthly minimum payment. By doing so, you will be able to get rid of your debt faster.

Step 8: Start paying off high interest card

If you fail to transfer all your debts, you are advised to transfer the balances from those high interest cards first; then only followed by low interest cards.

Step 9: Consider a second balance transfer

You should plan for a second balance transfer when you have a big sum of debt.

Step 10: Face your debt issues with positive attitude

Your goal is to become debt free. You can achieve it as long as you face it with courage. Eliminating debt is a challenging process but you are encouraged to “enjoy” the process. Although it might be very stressful for you to bear heavy financial burden, you are reminded not to be depressed. Life will turn out to be much better after you have cleared all your outstanding balances.

Applying for a zero balance transfer credit card will not enable you to erase your credit card debt completely overnight. You need to have strong determination and patience to pay off your outstanding balances within certain time frame. Besides, you must also stop creating new credit card debt. Watch out your spending habit and don’t swipe your card anymore as long as you haven’t cleared your previous debt.

“The debt settlement field is filled with scam artists who charge huge upfront fees and then fail to settle any debts.” – Liz Pulliam Weston, the author of “Your Credit Score: Your Money and What’s at Stake“

If you’ve encountered such companies that offering such debt settlement solutions – avoid it because it’s a scam!

According to Los Angeles Times, Weston says “The debt settlement field is filled with scam artists who charge huge upfront fees and then fail to settle any debts.” In fact, many debt settlement companies are getting bad press in the media after many of their clients filed complaints against them. It is because many ended up paying off more credit card debt than usual – refer to debt settlement scams.

Here’s some Weston’s advice when are struggling to pay off your huge credit card debt load:

1. Make an appointment with a legitimate credit counselor

Firstly, you have to allow a legitimate credit counselor to review your current financial situation to find out whether you’re eligible for a debt management plan – a five-year-plus low-interest rate plan that enables you to pay off your credit card debt on a regular basis. Weston suggested that you should find a counselor who is affiliated with the National Foundation for Credit Counseling – start finding a credit counseling now here.

2. Make an appointment with a bankruptcy attorney – when bankruptcy is your last resort

When there’s no other way to solve your credit card debt problems, you have to consult a bankrupt attorney to see whether filing for bankruptcy is the best option to eliminate your debt or a ideal way to avoid being sued by the creditors.

3. Start seeking reputable settlement companies when credit counseling and bankruptcy are not your best options

If both credit counseling and bankruptcy don’t really suit you – you can refer to a bankruptcy attorney for some recommendations of legitimate debt settlement companies that may be able to help you paying off debt effectively.

It’s hard to expect when such unfortunate event would happen on you and there are few circumstances that you don’t have to take responsible for your spouse’s debt:

• Certainly, if the card is under your spouse’s name and the debt is owed by your spouse
• If you or your spouse are a second cardholder on the account who has charging privileges and the account is not a joint account

On the other hand, the surviving partner is fully responsible for the credit card debt with these circumstances:

• If you or your spouse are a second cardholder on a joint account – in that case, you have the bear your spouse’s responsibility to pay off card debt because your name is listed in the credit report
• You’re likely to take full responsibility for your spouse’s debt if you reside in community-property state. However, these rules vary by state. Therefore, you have to consult your lawyer for more details about common property law in your state.

Since you have to bear your spouse’s responsibilities to pay off your debt – what should you do? Follow the 5 steps to below:

1. Inform all creditors that the account holder has passed away

You have to send a copy of the death certificate and other related documents including the account number to the credit card companies. Keep a copy the letter for your future reference and remember to send the original copy via certified mail as a proof that the mail has been delivered to the right recipient.

2. If your spouse has savings or assets – use it to pay off debt

If your spouse has cash savings or any valuable assets, you have to pay off the total outstanding debt with it. If you’ve any questions about making payment with your spouse’s assets, you can refer to the executor.

3. Be firm and don’t simply answer all calls from the debt collectors

Answering relentless debt collection calls might the most difficult part to handle. You need to succumb to such pressuring calls from the debt collectors for a short period of time. If it’s regarding paying off debt with your spouse’s assets – always remember to clarify all doubts with the executor. Don’t simply answer all questions that you’re not familiar with.

4. Make sure the debt does not exceed the statute of limitations

Most people would get rid of their debt legally without paying a single cent if their debt has passed the statute of limitations. In that case, if the debt collectors asking for a debt payment which the debt has passed the statute of limitations – get a lawyer to help you get out of debt that you’re not responsible for.

5. Settle debt with the creditors on behalf of your spouse

If your spouse doesn’t have any assets, you have to act fast to negotiate with the creditors for settlements. In this case, you can make a settlement offer and make the best offer that you can. Once you’ve reached to an agreement, make sure it’s done in writing before you start making payment.

In general, when the creditors have taken collection action on their debtors and there is no response from them, the creditors have the right to file a lawsuit on them. Once the lawsuit is filed, the court will send you a writ of summons to inform the debtors to attend to the court on certain date at certain time.

If the debtors don’t want to take any action and just ignore their debt, they still need to bear the court fee. Furthermore, if the debtors lose in the lawsuit, they will be instructed to pay back their creditors in full amount. For people who are facing financial difficulties, it is not wise for them to “run away” from their debt. They should face it with courage.

Hence, they are advised to look for settlement lawyer to assist them. The lawyer will be representing the clients to negotiate their debt with their creditors. He or she will first evaluate the clients’ financial situation and find out how much they can afford to pay. The legal advisor will then proceed to make the payment arrangement for the debtors. This professional normally sets up a payment schedule which suits their clients’ budget. He or she will try the best to reduce as much debt as possible on the debtors’ behalf.

If you are facing the same problem, what are you supposed to do? Is there any lawyer who can assist you? Seriously speaking, if you are not familiar with the legal firm, it will be quite hard for you to look for the right person to help you.

Here are 4 tips you need to bear in mind when you are searching for a good attorney:

Tip 1: Search for lawyer through state’s bar association

In order to look for a legal assistant in a secured manner, you are advised to search for the debt lawyers in your area. Your state’s bar association is the safest place for you to get a settlement attorney. You will be able to get the licensed and reputable professional here.

Tip 2: Refer to the Better Business Bureau (BBB)

Besides the bar association, you can also refer to the Better Business Bureau to find out the background of the attorney. Check whether the legal firm has a lot of complaints or negative reporting.

Tip 3: Compare the service fees

After checking the background of the legal firm, the attorney fee is also your main concern. In general, the service fee ranges from $500 to $1000, depending on how complicated your debt issue is. Since you are knee deep in credit card debt, you need to compare the legal fee from one firm to another carefully so that you can get the lowest deal.

Tip No. 4: Find out how much debt can be reduced

You need to see how committed the lawyer is. A good lawyer is able to ensure you that he or she can reduce your total debt up to 40%. However, giving empty promise is useless. You need to get the lawyer to include this in the agreement before you appoint him or her.

An attorney can be a scam artist, according to the Federal Trade Commission. Hence, when you are getting professional assistance to get rid of your credit card debt, you are reminded to be extra careful so that you won’t be trapped by the unethical lawyer.