3 ways to clear your credit card debt without filing for bankruptcy

Let filing for bankruptcy be the last resort.

13:24 17 September 2014

Despite the hard economic times, many people are still struggling to keep their credit card records clear. Such pressure makes them file for bankruptcy due. However, you do not have to declare yourself bankrupt to eliminate this financial burden. There are other solutions to your problems and they are discussed below. 

 

1) Your friends and relatives can lend you the money you need to offset your debt. Getting a loan from them is wise because they are more likely to charge you 0% interest. However, if they cannot afford to give you a personal loan, then get in touch with the banks or other lenders. You will certainly get the loan as long as you meet all the requirements. For instance, your credit record must be clean. You must also provide security to get the loan at a lower interest rate.

 

2) You need to think about lumping up all your debts to one loan, if you have a lot of debts. Normally, credit card interests are high. Hence, you can cut down your costs by compiling all your loans. After your loan application is accepted, use part of the money to pay all unpaid debts. You can then manage your loan easier by making monthly repayments.

 

3) At times, you might not be given debt consolidation loans for different reasons. When this happens, talk to your credit card provider and tell him to settle your debt. More so, draft a settlement letter to the creditor requesting for loan reduction. In the letter, explain your financial struggles and state the amount that you will manage to pay for the debt. If possible, appeal to them to reduce your interest or part of your balance. Aside from that, request them to not claim late and annual fees.

 

In summary, file for bankruptcy only when the given options fail. Declaring bankruptcy has its own share of demerits. You might end up damaging your credit score for many years.