5 Credit Card Debt Relief Programs to Consider in 2021

The average household in the United States carries more than $6,700 in credit card debt, a number that has been rising steadily over the past several years. With the economy in its current state, more and more people are finding themselves unable to pay off their debts, and it can be a difficult and stressful situation. Luckily, there are a few debt relief programs that can help you get out of debt and get back on track.

1. Balance Transfer Credit Cards. Balance transfer credit cards offer consumers a chance to transfer their balance from one card to another with a lower interest rate. This can be an excellent option if the rate reduction is significant enough to allow you to pay off your debt faster. Keep in mind that many balance transfer credit cards come with a transfer fee, so you should read the fine print before you commit.

2. Debt Consolidation Loan. Debt consolidation loans are designed to help borrowers combine multiple debts into one low-interest loan. This can be a great option if you have a number of higher-interest debts to pay off or if you have multiple credit cards. Before you take out a consolidation loan, however, make sure you understand all of the terms and conditions, and make sure you have a budget to make sure you can afford the payments.

3. Debt Settlement. Debt settlement services often help reduce your total debt by negotiating with your creditors to reduce the amount you owe. This can be a great option if you are overwhelmed with debt and can’t afford the payments. Be aware that debt settlement can have a negative impact on your credit score, so it is important to understand all of the risks before making a commitment.

4. Debt Management. Debt management programs allow you to work with a counselor to develop a budget, negotiate payments and debts, and get back on track. This type of program is often recommended for those with large amounts of debt and can help to prevent the need for bankruptcy.

5. Bankruptcy. Bankruptcy is a last resort for those who have gone too far in debt and have no other way to manage their debt. Keep in mind that bankruptcy can have serious long-term consequences, including ruining your credit score, so it should be avoided if at all possible.

If you are feeling overwhelmed with credit card debt, you don’t have to go it alone. Consider talking to a finance advisor or using a debt relief program to get back on track. With the right plan in place, you can find a way to manage and pay off your debt, and get back to financial security in no time.

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