Credit Card Debt Relief

Have you noticed that most of your money seems to be going to credit card interest and the needle never seems to move in the right direction on your balance due? Do you envision yourself stuck in an endless cycle of making minimum payments and gritting your teeth with each bill that comes? You might hate the thought of it, but have you considered that filing for bankruptcy may be your only way out?

If debt is starting to take control of your life and taking a toll mentally, physically, and emotionally, you don't have to stay in that cycle, and you don’t have to file for bankruptcy. You can learn about another option that will bring you credit card relief – an option that is not as drastic as bankruptcy but is effective at helping you break free from credit card debt.

You are in the right place to find out the answers to those questions asked above. Here's what you will discover as you read on:

How Do You Know When You Need Credit Card Debt Relief?

Contrary to what many people believe, you do not have to wait until you have "hit rock bottom" financially before finding credit card debt relief. In fact, if you are beginning to recognize that your credit card debt is problematic, it is better to be proactive than to wait to get help.

Consider these telltale signs of debt trouble:

  • You have trouble paying your bills on time. You may miss payments sometimes and find yourself accruing extra penalties such as late fees and increased interest rates.
  • You may be receiving calls from creditors or from collections agencies.
  • You worry about your debts to such an extent that it interferes with your normal functioning or you lose sleep over them.
  • You do not have a budget, but you suspect that you spend more than you earn.
  • Even though you worry about debt, you find yourself engaging in "retail therapy" to feel better.
  • When you have explored your debt relief options, you have discovered that some of those options are no longer available to you because your debt has impacted your creditworthiness.
  • You feel shame about your spending habits and try to hide your debt problems from your friends or family.
  • You feel that you will never get out of debt, no matter what you do.
If you identify any of these signs in your own life, please reach out to a ClearOne Certified Debt Specialist to talk about your debt relief options today at 866-481-1597.

Get Rid of Credit Card Debt

 

Causes of Credit Card Debt

There are a lot of reasons people go into credit card debt. Going into debt is not necessarily a sign of financial irresponsibility, so if you find yourself in credit card trouble, it should not be a source of personal shame or stigma.

The leading causes of credit card debt are:

Inflation and the cost of living: Americans may be earning more than they used to but inflation and a higher cost of living are outpacing that bump in pay for many of us. After crunching the numbers, Investopedia noted: "While the average person is still making the same amount of money when accounting for inflation, prices for many of the daily necessities have gone up considerably, which means that each dollar earned does, in fact, buy less than it did 20 years ago." To make up the difference, many turn to credit cards to buy necessities.

Credit Card Relief - Inflation and Cost of Living

(Source: Pew Research Center)

The cost of medical care has skyrocketed, causing many Americans to resort to using credit cards to cover healthcare expenses. According to research compiled by Clever, between 1984 and 2018, the cost of healthcare for the average American household increased 101%, from $2,474.85 to $4,994.25 annually.

Credit Card Relief - Increasing Healthcare Costs(Source: PGPF.org)

Using credit cards for purchases has diminished or eliminated the psychological sense of loss shoppers experience every time they take money out of their pockets and hand it to someone. Coupled with retailers’ efforts to manipulate people’s desires into needs, this has led to an explosion in unnecessary purchases.
 

Credit Card Relief - Common Impulse Buys

(Source: MagnifyMoney.com)

Once you get into debt, you find that your interest payments add up, making it seemingly impossible to escape debt. As interest accumulates, your indebtedness deepens instead of improving, despite the payments you make. For example, in the scenario below, if a person owes $10,000 in credit card debt with an interest of 18% and pays $200 toward that debt every month without fail and never charges anything else to the card, it will still take 7 years and 10 months to pay off the balance due. Worse yet, it will cost $8,622.00 in interest alone.

Credit Card Relief - Credit Card Debt Repayment
(Source: CreditKarma.com)

These are typical debt traps for higher-income earners. Because of their better credit score, such credit card users enjoy higher credit limits that translate to more temptations to overspend on high-dollar items.

According to the Federal Reserve, 39% of Americans do not have enough savings to handle an unanticipated expense of $400 or more, such as a car or appliance repair. Considering that a study by AAA revealed that the average cost of a car repair is $500-$600, many Americans may be only one car repair bill away from going into credit card debt.

How Does Credit Card Debt Relief Work?

There are several ways to obtain credit card relief. A ClearOne Certified Debt Specialist can help you figure out which of these options suits your particular situation the best.
  • Debt consolidation brings your credit card debt under the roof of a single loan. This loan will preferably feature a lower interest rate than what you are currently paying to your creditors.
  • Credit counseling combines your debts into a single bundle, lowering the cost of your credit. It instills some much-needed discipline in your finances.
  • Bankruptcy may be a solution if you are buckling under the burden of your credit card debt. This credit card relief method uses a legal avenue that allows you to discharge some of your debts while paying off the rest in a structured, disciplined way.
  • Debt settlement is a form of credit card relief in which you work with your creditors toward a realistic debt reduction plan. In most cases, it is best to do this with the help of a debt settlement company that uses professionals to negotiate with your creditors on your behalf. Through debt settlement, your creditors may forgive a portion of your principal debt so you end up paying less than you owe. Contact ClearOne Advantage to learn more about how debt settlement works.

How Much Can You Save with Debt Settlement?

Creditors are often willing to make considerable concessions through debt settlement. This way, they can recover money from debtors they could not get back otherwise.

How much can you save with debt settlement? To illustrate, consider Dan's story.*

Dan works hard every day and has always been conscientious about paying his bills on time.

Unfortunately, Dan had an accident last year and the medical bills mounted up quickly. Dan paid his medical bills with a credit card, expecting to use money from an insurance settlement to pay the card off before it became a problem.

The settlement did not come through, and now Dan is struggling to pay the minimum payment each month on a credit card with a balance of $26,000 and an interest rate of 18%.

Credit Card Relief - Dan Example

*”Dan” is an example of a typical ClearOne client, whose experience is a combination of the thousands of clients who are in the ClearOne program.

This is just one example, but it reflects the overall reality of debt settlement. According to the American Fair Credit Council:

Credit Card Relief - Debt Settlement Program Savings

 

How Long Does it Take to Settle Credit Card Debt?

The American Fair Credit Council states that 76% of those who enroll in a debt settlement program settle at least one account in the first 36 months of the plan, and 54% settle more than half of their debts in 36 months. The average debt settlement enrollee settles around 51% of his/her debt in the first 36 months.

How quickly you can resolve your debt depends on your income and the amount of money you can allocate to debt settlement. It also depends on the size of your debts and the deals your debt settlement firm can secure for you. Complete debt settlement should not take longer than four to five years.

Can I Negotiate Credit Card Debt Settlement on My Own?

Yes, you can, but that doesn't mean it's the best idea. If you are an expert negotiator with knowledge of how debt settlement works and loads of time and patience, you can contact your creditors directly, one-by-one, and obtain written agreements covering all the legal terms of your settlement deal. Or you can work with a trusted debt settlement company like ClearOne Advantage and let it do all the work on your behalf.

A debt settlement company has more clout than an individual debtor, not to mention more experience, so they can negotiate from a better position than individual debtors.

What to Look for in a Debt Settlement Company

Your debt settlement company should have a good reputation and offer a 100% satisfaction guarantee.

Look for an A+ rating with the Better Business Bureau and positive client feedback on the services debt settlement companies offer. Make sure that you opt for the services of an entity that has helped thousands of customers already.

Contact the debt settlement company and after your initial conversation, ask yourself these questions.

  • Is this debt settlement company committed to working out the best solution for my situation?
  • Does it possess the tools and resources to help me achieve my goal of freedom from debt?
  • Does it have a team of skilled negotiators and debt specialists capable of obtaining a good debt settlement deal for me?

Let ClearOne Help You Settle Credit Card Debt

By partnering with ClearOne Advantage, you secure the services of a dedicated team of professionals whose goal is to negotiate the best possible deal on your behalf.

  • ClearOne Advantage does not charge you upfront fees and offers personalized plans to suit your needs.
  • Our Certified Debt Specialists make sure that you understand all the details of your debt settlement plan before you commit.
  • We give you access to an online portal through which you can track your debt settlement progress in real time.
  • Our expert negotiators have years of experience working out the best settlement deals for our clients.
  • Our Client Relations Specialists support you throughout the debt settlement process to keep your efforts on track.
No matter how desperate your credit card debt situation may seem, you always have a way out. Talk to a ClearOne Certified Debt Specialist today at 866-481-1597 and get a free savings estimate.
 
Credit Card Relief - Free Savings Estimate
 

 

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I wish to thank you for all of your agency support and encouragement. The last two months have been very stressful due to the accounts going legal. It has been also very rewarding to get through this process and have a good grip on our future and we have started this planning and example for our children.

- Joseph and Michele, PA