However, there are many other options available to get rid of your credit card debts without approaching credit card debt bankruptcy. 

If you’re considering filing either chapter 7 or chapter 13 bankruptcy to get out of your debt, take a look at some other options: debt consolidation, credit counselling and debt settlement.

Debt Consolidation

Debt consolidation is an option available than going for credit card debt bankruptcy to shed off your debts. Debt consolidation is simply the procedure of mingling a number of unsecured loans into another unsecured loan. You can do this by taking out a ‘low interest debt consolidation loan’ or a loan by using the equity of your house. Debt consolidation further provides you the opportunity to make single monthly payment to a single creditor. It’s always better than credit card debt bankruptcy, as here you also get the chance to improve your credit score.

Credit Counseling

Credit counselling can also help you to shed your credit card debt without moving toward credit card debt bankruptcy. To know if credit counselling can assist you, ask yourself the following questions:

• Is my debt a result of lack of self-control?
• Is my debt a result of poor spending habits?
• Is my debt a result of overindulgence in wants rather than spending on my requirements?

If your answer is yes, then credit counselling might work for you. However, if your debt is incurred due to unexpected expenses (job loss, medical), and not the result of lavish spending, then credit counselling is not for you.

Credit counselling often involves a negotiation with creditors to establish a debt management plan (DMP) for consumers. A debt management plan usually consists of reduced payments, fees, and interest rates for the client.
Therefore, before choosing credit card debt bankruptcy, make sure you’ve checked the options twice mentioned here.

About The Author: This article has been written by Angela Sanders. She is associated with Oak View Law Group, A Trustworthy Bankruptcy Law Firm. She writes articles on various financial topics, such as Debt Consolidation, Debt Settlement, Bankruptcy Filing, General Finance etc.

1. Balance transfer with zero interest rate – Most credit card issuers offer new card that has zero interest rates within its promotional period. Thus, you can transfer credit card debt to this new card account and pay it off within this promotional period. You have to act fast to pay your debt off as the new interest rate will start to take effect after the promotional period.

2. Negotiate with the creditor for a debt reduction – If both of you have stable jobs; it’s not that hard to paying off your credit card debt if compared with those unmarried ones. If you seek debt settlement with your creditor, you would have the chance to offer your debt deduction rate with the creditor so that you’re able to have your total outstanding balances reduced (probably have it half reduced).

3. Greatest asset is the ability to work – Regardless how much credit card debt that both you and your partner actually owe, as long as both of you share the same objective – which is elimination your debt and such elimination process can be hastened if you set up a safety reserve. Cut your expenses and avoid spending your money lavishly as well as manage your spending wisely. It would take two hands to clap – meaning that it requires full cooperation between you and your spouse in order to work together to resolve your debt problems.

4. Look for other opportunities that can increase your income stream – If you’re still lacking of financial solution, it is necessary that you look for a part-time or a freelance jobs that can possible increase your income stream. You would likely to working extra hours to increase your total revenue and cover your debt obligations.

5. Sell your belongings and start cutting expenses – You have options of selling your valuable personal belongings – for instance your car, boat, wagon, collectible items or any items that can be sold at a certain price. Therefore, you would need to temporarily lower down your standards of living – i.e. taking a bus to work, or packing lunch boxes for your meal at the office and etc. The main purpose of selling your belongings is to accumulate sufficient funds to pay off your credit card debt.

6. Statute of limitations – if the debt has exceeded its statute of limitations, you have the right to not paying back the total outstanding balances. If you’re not sure of the validity of your debt, you need to scrutinize all the information including those card bills and notification, and consult with a lawyer to find out whether you debt has exceeded its “expiration date”.

Take this chance to initiate your proper financial planning that reflects a healthy marriage partnership.

For more updates about credit card debt relief tips including free debt tools, debt elimination tips and credit card debt settlement, visit http://CreditCardDebtSolver.com

1. Microsoft Excel – you can create a spreadsheet and input the information about the entire credit card debt including total outstanding debt, interest rates (APR) of each of your card, minimum monthly payment and the due dates of making your card payments. It is better than writing them down in your personal journal or diary because you can view the Excel spreadsheet in your computer – and you can as many spreadsheets as you want, without wasting any papers.

Besides that, you can create spreadsheets for your daily or monthly budget. Therefore you can track your spending as the more money that you can save, the faster you can actually get rid of your debt.

2. Google Calendar – This free internet tool is something that you need to use, especially when you need something to remind you about making promptly payments to pay off your credit card debt. Besides asking others to remind you, you can set an email alert – probably 1-2 days earlier before your card payment is due.

You can also use this tool as your organizer – to get things done effectively, for instance appointment with the creditors if you’re looking for a debt settlement and negotiation with them on your own.

3. Credit card debt repayment calculator apps for iPad, iPhone and Android phone users – for instance, CalcMoolator, an interactive financial calculator specifically designed for such gadgets above; has the ability to calculate the total interest that you can save and the exact loan term if you pay more than the minimum. This interactive app is also capable to produce spending worksheets that can assist you create a personal budget.

4. Online credit card debt repayment calculator – this tool is meant for those who don’t have such gadgets mentioned earlier. It works exactly the same as the CalcMoolator and you can search for such financial calculator on the internet – by Google up the keyword “credit card debt calculators”.

5. The Total Money Makeover book by Dave Ramsey – this debt relief book teaches you how to handle and manage your massive debts on your own, and one of the most valuable lessons is about “Debt Snowball” method – which you prioritize your debts and start paying off debt from small to larger outstanding balances.

These 5 debt tools are able to help you to stay focus on eliminating your card debt if you use them in the right way.

For more updates about credit card debt relief tips including free debt tools, debt elimination tips and credit card debt settlement, visit http://CreditCardDebtSolver.com.

• In the latest amendment, the Federal Reserve Board has placed caps on the late fee charges. If you have dragged your credit card payment for the first time, your bank or your card provider can only charge you the penalty with the amount of not more than $25. However, you need to bear in mind that if you make more than one late payment in a 6-month period, the late fee can be increased to $35 for every subsequent late payment. Hence, you must make sure that you don’t pay bills late. If not, you have to bear more costs every month.

• Under the new rule, the late fees can no longer be more than your monthly minimum amount owed. For instance, if the minimum payment stated on your credit card bill is $30, your late fee must not be more than $30. When you receive your monthly statement, you are advised to check your penalty carefully. Never ever let your bank or card issuer to take advantage on you.

• In order to reduce the credit card debt, most of the card holders have reduced or even stopped swiping their cards temporarily. With the new rule, the card holders will not be charged an inactivity fee for not using their cards for new purchases or new transactions. In other words, the card providers are not allowed to charge additional fee if the card holders do not use the cards for a certain period of time. Even if you are knee deep in credit card debt, you don’t need to cancel your account. What you need to do is to stop using your card until you have cleared off your outstanding balances.

• Effective from 22nd August 2010, all the card holders will not be charged multiple penalty fees for a single transaction by the card issuers. For instance, if a card holder fails to clear his or her payment check on time and the check is bounced, the card provider is not allowed to charge both a returned check fee and a late fee. This is to protect the consumers who are facing financial difficulties from suffering additional burden.

• For card holders whose annual percentage rate has been increased since 1st January 2009, you must pay extra attention. With the new amended act, if your lender increases your interest rate again this year, the lender must explain the reason for increasing the rate clearly by providing written notice. If no notice is given, the card holders have the right to ignore the increment of the interest rate.

Now, after going through with you the latest amended act, I strongly believe that you can make use of the law wisely to overcome your financial hardship.