Credit Card Debt Elimination

Written by Jill Morrison
Bookmark and Share

Falling into credit card debt can happen in the blink of an eye. It is very easy to overspend and not realize until it is too late when using credit cards. Unfortunately, eliminating credit card debt is typically a difficult and lengthy process. The best way to avoid getting into debt is by carefully monitoring credit expenses, or by not using credit cards at all. If you are already in the trap of credit card debt, there are a few options to consider that will help you to eliminate this debt.

Debt settlements and debt consolidation loans are both popular options for eliminating credit card debt. While both methods have their advantages, debt consolidation loans seem to have many more disadvantages than debt settlements. Debt consolidation loans are desirable because they combine all debt amounts and unsecured bills into one monthly payment with lowered interest rates. However, they will often get people into deeper or unsecured debt. Debt settlements are more desirable because they can cut down your total debt amounts, interest rates, and pay-off times without the need for a loan.

Types of Credit Cards That May Contribute to Debt

There are a few different types of credit cards that commonly encourage debt development. Unsecured credit cards are the most common of all credit card options. Perhaps they are so popular because they are fairly easy to obtain. They can be issued to people with imperfect credit or no collateral, unlike secured credit cards. These credit cards can get people into trouble because they often have annual fees or high interest rates that must be paid in addition to balances from purchases.

Secured credit cards can be dangerous as well because they require collateral. They may require that you have certain amounts of money in the bank in order to cover them. Some will also only allow users to shop from particular catalogs that have expensive items. Department store credit cards are another option that can lead to debt. They typically offer customers special deals, such as 10 percent off purchases the first time credit cards are used. This is great for initial purchases, but these cards can be dangerous after that, with interest rates as high as 21 percent.


Bookmark and Share