Digging yourself into a deep hole financially with credit card debt is devastating. It feels as though you are facing an impossible mountain to climb. Often times, you probably feeling like throwing in the towel and just giving up. However, the persistent calls from debt collectors and watching your credit score gradually decline gives you the motivation to find help. You finally decide to dig yourself out of this hole and rebuild your financial strength. It is a great decision, and many resources are available to begin filling the hole.
Debt Consolidation and Filling your Financial Hole
One of the best ways to take action immediately is working with a debt consolidator. The company negotiates with credit card companies where the goal is obtaining a far lower rate and payment. Once the terms of the negotiation are approved, all of your debt is consolidated into one easy monthly payment. Not a loan, but all your debt merged into one payment. Your payments are lower, your credit score improves, and bill collectors stop calling. This is the first step in filling the hole.
Keeping Credit Card Debt under Control
Consolidation of all your credit card debt is not the only step. Once the terms of the consolidation are agreed upon, and you start making your monthly payment, the process does not end there. You must seek out financial counseling to continue filling that deep hole. Once you find stability in your financial situation, you start thinking about a new credit card and how one card will not hurt. Stop there immediately, think about what you are doing and how that decision nearly ruined you the first time. Use the financial counseling resource from the consolidators who fixed the first part of your financial situation. Otherwise, you may find yourself right back at square one.
Debt Free for Life
Unfortunately, throughout the course of your life, certain debts remain. It is certainly not the kind of debt that dug that financial hole. Taxes, insurance, food, shelter are the kind of debt you will always face. To keep yourself in a positive frame of mind, think of this type of debt as manageable debt.