Debt relief is the quickest way to become free of the credit treadmill

If you are up to your neck in debt, do not lose hope because there is a path to freedom. But in order for you to discharge your unsecured debts once and for all you have to be in it for the whole game. No overnight debt management methods can totally free you from the credit treadmill. Some quick fix measures at credit card debt relief are oriented as damage-control measures which try to get around the bad debt situation without eliminating the debts.

They can also become every increasingly hard to do every time you try to quick fix a problem with another problem. Of all the plans for ridding yourself of credit card debt, debt reduction is the most successful at saving money and helping debtors become debt free.

Of course, if you are swamped with debt and bankruptcy is imminent, the last ditch chance to pay back your bills is through a proactive form of debt reduction called credit card debt settlement. With this strategy, a debt settlement company attempts at a negotiation with your collectors to settle your debt at an amount substantially less than what is owed.

In the meantime, you are obliged to set aside money for a one time settlement payment. If the settlement is approved, you will receive a letter in the mail from the creditor that the debt has been settled or paid. The collector will also be able to notify the credit bureaus that the same bills you settled have been satisfactorily fulfilled. Settlement is particularly attractive for creditors during times of tough financial predicaments for the person in debt, when he is near brink of going through bankruptcy; in which case the creditor is faced with the very real possibiliry of losing more money by getting only a very small amount of the original balance.

Credit card debt settlements are only eligible for debts that are not secured such as those concerning credit cards and medical bills. Also, be aware that this is an emergency measure. So you should brace yourself for the respective consequences. This would include things like a negative FICO credit rating, an increase in harassment over the phone the chance of being taken to court, tax obligations, and that all-too-familiar necessity of coming to a terms with your creditors.

If your situation is not as shaky as the one described above, then you can get out of debt easily enough. All you need is persistence, patience, and a desire to try out the most recent of debt reduction plans: debt-snowballing or debt repayment. This practical method of lowering debt is especially aimed towards revolving credit situations such as those involved in credit cards.

In order to find the road to financial freedom, first make a list of all your bills in ascending order from the smallest balance to the largest (notice that the order is not based on the APR, but on the due amount). If some debts come close in the balance owed, move the one with the higher interest to a elevated spot on the list. Then commit yourself to pay the minimum payment on all bills.

If more money is remaining, add this to the dues on the smallest debt, and keep determination on finishing your dues on the smallest bill until it isa thing of the past. As soon as the smallest bill is off the list, repeat the same process for the next ranked spot, this time adding the previous minimum payment for the cleared debt onto the funds allocated for the next.

Keep up this system and you will be surprised at the speed at which you can rid yourself from debt.

Steve Martin is a credit card debt analyst with the US Consumer Advocate, which practices in credit card debt reduction.

- Steve Bis

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