How to Resolve Credit Card Debt without Debt Settlement or Filing Bankruptcy

By | July 21, 2013

In general, when people find out that they have lost their ability to pay off their credit card bills, they usually opt for the following:

Many people are wondering whether they can really resolve their credit card debt with other more constructive methods. The answer is YES.

There are other useful options waiting for you without damaging your credit. The above mentioned financial options are not ideal because all of them will leave negative impact on a person’s credit file. As a result, let me show you other option:

Option 1: Tax Refund

For people whose income took a hit in 2009, you are probably entitled for larger tax refund this year. In average, every American’s tax refund is about $2,700. What can you gain from there? You are advised to prepare your tax return online immediately. Once you have obtained the additional fund, use it to pay off your credit card debt.

Option 2: Obtain Personal Loan or Consolidate Your Multiple Debts

For people who can’t afford to pay back the debt with the current financial situation, you can consider getting help from your friends or someone you know. Borrow the money from them to pay off your high interest credit card debt. Besides relatives and friends, you can also look for personal loan offered by your employer or other financial institutions. Getting friendly loan or company loan will not affect your credit at all.

If you can’t get friendly loan or personal loan, you are encouraged to contact a non profit debt management organization to work out a debt consolidation plan. The professional counselor will be responsible to assist you to consolidate all your outstanding balances into one single loan with much lower interest rate.

With the professional assistance, you will be able to utilize the loan to pay off all your existing debts first. When you get rid of all the outstanding, you can then focus on paying back one single loan.

Option 3: Create your own stimulus package

In 2010, the Federal Government has no plan to give out stimulus package to their citizens. Without the “backed up” fund from the government, you still can survive on your own. Be creative! Create your own stimulus package to raise CASH. You are find many ways to get extra income, such as getting a part time job, selling off luxurious items or car, refinancing your house, etc.

Besides, work on a proper budget and follow it strictly. You can cut down your daily spending, especially on groceries and entertainment. At the same time, you are advised to place an expensive cash value insurance policy with a low cost term policy. By doing so, you are required to pay lower premium but with more coverage. Indirectly, you are building up more cash for yourself. Read more – Eliminate Credit Card Debt For Good as Your Personal Stimulus Package

To sum up, we need to be flexible. Don’t just follow what people are doing. In order to become debt free, there are many ways you can apply and it is not necessary to affect your credit score.

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