So when do you realize that you are going through a hard pressed credit card debt predicament?  For a lot it’s when they learn the monthly minimums will last forever, for some it will take a loss in funds to then realize they can no longer afford the debts.  There is one issue for sure that being tens of millions of consumers are ensnared in unsecured credit card debt and can fathom the financial severity of this.  Those debtors who comprehend they are in need of assistance have mastered the first move towards financial freedom.  The next step in this process is to figure out which system of debt relief will be the most helpful. 

There are three main systems of debt relief that consumers normally use to eliminate credit card debt are CCCS programs, debt settlement, or Chapter 7 bankruptcy.  All the options have their respective negatives and positives. 

Consumer credit counseling for a lot of consumers seems simple enough because it has less of an effect on the FICO history.  The more serious holdback is that a lot of consumers honestly don’t have the capital to budget a credit counseling program, in a lot of cases the cost will be the same as the monthly minimums.  Additionally if just one payment is missed into the program the debtor will get kicked out and forego the advantages of a lower annual percentage rate and one monthly fixed payment.

Debt settlement for millions is going to perform the best currently in this mind numbing economic climate.  This option is saving people up to fifty percent of what they currently owe and aiding these people to get out of debt in only a couple of years, in opposition to thirty years or more with the creditors monthly payment treadmill.

Last and least there is always bankruptcy which should honestly be a last option.  This will have an extremely long deteriorating effect on a debtors credit and will be a public record for the whole of the debtor’s life.  Not to mention the hearing is not enjoyable to go through.  The judge will mandate how much capital the consumer must pay back and how quickly they must do it gaining full control of the debtor’s financial situation.

One thing is certain no matter what the situation is, paying down debt needs to be a high priority for debtors having difficult cashflow issues.   Remaining in credit card debt is similar to economic suicide and will keep you suffering financially for a very long time.   Be sure to locate some kind of debt relief assistance as quickly as possible.