An emergency situation caused a huge credit card debt in your name and now
the collection agencies nag you all day for recovering the money. What to do in
such a situation? Situation is no doubt bad but all is not lost, it can be
stopped from getting worse if you follow these steps.
Don't shy away from collection agents. Answer their calls politely, tell them
that you intend to pay all the debt and are willing to negotiate.
Inform the credit card company about your emergency situation and the debt it
caused. Explain to them your financial condition, and any foreseeable
improvement that you are able to visualize. Credit card companies thrive on
their clients and they don't want to loose them. A client who is willing to
repay all the debt is a very good asset for them, which they would like to keep
If you are unable to handle debt personally, seek credit counseling and get
pertinent advice, so as to get rid of the debt as soon as possible.
If you have more than one credit cards and the confusion on handling their
repayment schedule caused you this debt, try debt consolidation. It can be both
secured and unsecured. Debt consolidation will help you turn multiple credit
card debts into a single one with easier repayment option.
Debt settlement can also be tried to get rid of a huge credit card debt. Debt
settlement companies provide expert services to reduce the credit card debt up
to 50% or even more. These companies charge a percentage fees on the credit card
debt, but can dramatically reduce your debt burden. If you use this option to
get rid of the credit card debt, it will reflect on your credit report badly.
The options to get out of credit card debt are numerous, but why get into
credit card debt? A habit of saving something every month for emergencies will
help tremendously. And not to mention staying within your income limits can keep
off the credit card debt.