Debt Settlement

If you are over your head with debt, than Debt Settlement might be your only option. Debt Settlement works like this, you first stop paying your credit cards and then you call your credit card companies and ask if they would be willing to settle the debt. At first this can hurt your credit score because you are not paying on your credit cards, but your credit score will go back up after you get your debt settled.

Debt settlement isn't the easiest thing to do yourself, if you don't think you can do it by yourself, than you should try a Debt Settlement Company. If you want to give it a shot yourself, than I'll give you a little advice on how to settle your debt. First, you need to be able to show the credit card companies that you can't afford to pay your credit cards. You do this by adding up your income and comparing it to your monthly expenses including your mortgage, credit cards, food, gas, and any other logical expense. You might be tempted to over state what you require for stuff like food per month, but remember the credit card companies aren't going to believe that a single person needs to spend $1,000 a month on food. If you can show on paper that you don't have any money left over at the end of the month, than debt settlement should work for you.

Second, you will want to stop paying your credit card bills, don't stop paying your mortgage, you will not be able to settle this. Don't get to excited about not paying your credit cards, because you are going to have to put that money in a safe place because that is what you will use to settle your debt. Lets say you have a credit card that has a current balance of $5,000, and after not paying on it for a few months or longer, your credit card company might let you settle this debt for $2,500. This works because the credit card companies just want there money, and they don't want to have to use debt collection agencies. You should be able to get out of your credit card debt within a few years, and at the same time try to pay more than your minimum payment on your mortgage and you will be debt free in a lot less time than you ever expected. The hard part is not getting wrapped up in credit card debt ever again, use debit cards instead and you will lead a lot happier life.