Make the Minimum Payments or Obtain Credit Card Debt Relief?

Everyone may have credit card debts, but they may be able to handle those debts without resorting to obtaining help from an outside company. For those who believe that they may need credit card debt relief there are companies that can help them. They must first determine if it would be worth it for them to look for this type of help.

Consumers in Need of Help with Debt

Those who would benefit from credit card debt relief are those who:

• Do not have any money saved
• Are lying awake at night incessantly worrying about their debts
• Have debt collectors constantly contacting them
• Avoid opening their credit card bills every month• Do not know how much money they owe
• Use credit cards for everything they buy
• Notice that their debts are straining their marriages
• Have a debt-to-income ratio of at least half
• Currently have more than three major credit cards in their possession
• Have an extremely difficult time paying the minimum payments

When people are in credit card debt, they often do not want to do anything about it. These are the people who continue to make the minimum payments and remain in a financial hole. Sometimes, this is a good plan for people, but it may not be for everyone.

Reasons to Pay the Minimum Payments

1. Sometimes, people know that they are going to receive a large amount of money in the near future that will help them pay their credit card debts. For example, they may be set to receive a promotion with a large increase in income. The tax season is here, and people may be expecting a large tax refund. They also may have a piece of property that they are in the process of selling, or they believe they have a good chance of winning the lottery. Until the money comes from these options, these people can feel free to make the minimum payments.

2. The second reason to make the minimum payments is if their credit history is in very positive territory.

Reasons Not to Pay the Minimum Payments

1. If the people described above actually lose their jobs or they are unable to sell their property, the only choice they would have is to file for bankruptcy.

2. Their credit scores may begin to lower because the credit bureaus will consider the fact that they are only making the minimum payments. In this case, it could mean that they have too much debt, a factor that lowers people’s credit scores.

3. By just making the minimum payments for several years, people paying high interest rates are paying a lot more in interest than they originally charged.

4. Credit card companies raise interest rates a significant amount after a consumer has made one late payment.

5. The excessive worry creates a highly unhealthy existence for consumers having trouble making the minimum payments.

Most people will discover that they are the ones who need help with their credit card debts. The answer to this problem is to seek a good debt company to help them find the best option for them, and it does exist.

For more information click Franklin Debt Relief


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