Where Can I Get Help Dealing with My Credit Card Debt?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

At the beginning of this year I had begun looking into bankruptcy. I quickly decided to seek other alternatives before going that route.

Having had six figures of debt before and paying back every penny I had decided that I could probably pay it off again. So I decided to contact my creditors and see if I could get any help.

I started with Bank of America first. I discussed their Balance Liquidation Program or BLP with them. They had offered me reduced interest rates on all my credit cards, but didn't offer waiving any late fees.

I decided to check other options before committing to the banks BLP program. A lot of people I know have considered using a debt consolidation company to help with their credit card debt. You do NOT want to go this route.

These kind of offers are usually rip-offs and can end up doing more harm than good. Now matter how good the offer they make sounds, don't do it.

These companies generally don't tell you that they will probably charge 10 percent of what you owe on your credit card balances. In the event they do end up working out a settlement with your creditors they will most likely charge you another 10 percent on the amount they "save" you.

These types of companies will most likely NOT tell you that what they have negotiated for you will destroy your credit score and that you will end up owing income tax on the amount that was forgiven. So this was not the way to go for me.

So I contacted the National Foundation for Credit Counseling. The NFCC is a network of nonprofit agencies trained to help you asses your financial situation and plan out the steps necessary for you to follow. Remember they don't wave a magic wand and make everything go away. Getting out of debt is no easy thing. Unless, you have a rich uncle willing to pay it all off for you or you hit the lottery you will have to work hard at paying off your debt.

When I made my appointment with my local NFCC I had to wait over a week to get in to see anyone. Which means there are a lot of other people in this situation. It also makes me feel good that people are looking into other options rather than throwing in the towel and filing bankruptcy.

The meeting was interesting in the fact that after laying out a quick budget that there was absolutely no reason for me to file bankruptcy and I should take the banks offer and run.

The interest rates that the banks offered could not be beat by the NFCC. The rates would have been pretty close, but it wasn't worth taking. Even though the rates were almost comparable, it would have meant I would have it reported on my credit report that I was using a credit counseling service. So going with the banks BLP was the way to go.

I have one more card to set with Chase and then all of my accounts will be under the balance liquidation program.

If you are looking for help with your credit card repayments definitely start with your bank first and see what they can offer you. If that doesn't work give the NFCC a call at 800-388-2227 or visit them at nfcc.org. They're the ones you can trust.

We also recommend:

Chase's Balance Liquidation Program is Fantastic

Should I Use a Debt Consolidation Company To Pay Off My Debt?

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