Credit card debt can make you feel like you’re underwater. Intellectually, everyone in Indiana knows that way to stay out of debt is to spend only moderately and pay off your balance at the end of the month. However, sometimes there are emergencies in life that need to be attended to. It’s easier than people like to admit for credit card debt to get out of control. Luckily, there are simple steps you can take to get back to financial health.
Clearing your credit card debt
The first thing to do is make a repayment plan that works for you and your credit card company. It’s crucial that you communicate with your creditors. They don’t know why you’re late; they just know that you are behind on payments. Talk to them about what payments you can make and on what time frame. Ask about any relief programs or settlement options. Sometimes, it’s possible to settle for a portion of what you actually owe.
Getting help
It may also be a good idea to reach out for help. There are many programs available for people who find themselves in more debt than they can handle. Some of these are administered by non-profit organizations. There’s even a 12-step program related to debt called Debtors Anonymous. For some people, bankruptcy may be the best option.
In the United States, some people view filing for bankruptcy as a negative outcome that reflects badly on the debtor. However, it’s actually one of the most important provisions under the law. Bankruptcy makes it possible for debtors to wipe the slate clean and start again. There are two main forms of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7 involves liquidation while Chapter 13 involves a payment plan, and both help individuals get their finances back under control.
When you find yourself in credit card debt, the most important thing is not to isolate yourself. Communication and targeted action will help you get out of the credit card debt cycle. Support and assistance are available to you, so don’t be afraid to ask for help.