In order to have sufficient savings for the long run, you need to get rid of your credit card debt. The longer time you take in making the payments the greater is the interest rate you have to pay.
Therefore, the huge payments leave no stone unturned to stall your growth and also take a toll on you.
If you are distressed due to the heavy debt then you should follow the technique of debt negotiation which is instrumental in taking you out from your debt.
The different credit card Companies work in order to raise profits. When a person is debt ridden and is unable to repay the Company then it tries to take back as much money as you can give them.
If a person files for bankruptcy then in majority of the cases the credit balance is removed. The reason behind it is that the credit card debt is insecure and hence the Company just relies on your word that you will repay them. It does not have any specific guarantee from you. This is not like the loan that you take for buying home. If you fail to pay the mortgage than the bank has the power to confiscate your property in order to recover the amount.
If you have failed to make payment on several occasions and you find it difficult to repay than you should talk to the bank officials and explain your situation to them. You need to tell them that you are planning to go bankrupt and you want are making your best possible efforts to avoid it.
You should tell the Company that you are ready to make a payment of 25% of the balance in the coming months if the Company agrees to close your account not to increase the interest rate any further.
The whole process may take some time but you have to convince the bank that you are on the verge of filing for bankruptcy and you are making efforts to avoid it. The bank will definitely ask you how you plan to make the payments and how would you manage your finances. You can tell them that you are trying to take tide over the situation by taking money from friends and in-laws. The main thing here is that you have to bring home the point that you do not have any other alternative.
However, the flip side is that if you go in for a credit card debt settlement nobody would be interested in giving you loan. It may put doubts over your credibility and may hurt your pride. Therefore, you should avoid considering the debt settlement unless you are really on the brink of bankruptcy and have no other way out as it will save you from going to the court.
So many people live their life without credit card debt and it is also possible for you to do so. Remember that debt is bondage and it brings its own set of problems along with it.