If you live in New York and have more credit card bills than you can handle, there are several things you can do.

The Post-Holiday Wake-Up Call

Every December you swear you aren’t going to go overboard on spending for the holidays. And every January you get your credit card statements and realize that you did it again. If you’re credit card debt is becoming too much to manage, here are some options for you.

What You Can Do on Your Own

First things first – you need to set up a budget. The last thing you want to do after clearing your credit card debt is to start all over with more out of control spending. Experian has a good overview on how to set up a budget https://www.experian.com/blogs/ask-experian/how-to-make-a-budget/. But basically, for paying down debt you should:

• Figure out your total income – where your money comes in from
• Figure out your monthly expenses – concentrate on necessities (food, home, transportation, etc…)
• Anything extra should be used for paying down your debt

If you are trying to work out how long it will take you to pay off your debt, Bankrate.com has a calculator https://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx where you can plug in your debt, your interest, and the monthly payments you can handle.

However, if you’ve maxed out multiple cards and can’t see your way out through budgeting, there is always credit negotiation.

Negotiating Your Credit Card Debt Down

You can try doing this yourself, but honestly, you’ll get a better result with a debt reduction lawyer at your side. Working with the right credit card reduction attorney, they’ll be able to negotiate the right settlement agreement that will work best for your specific situation. Once the total amount owed is discounted down, there are various ways to pay off the debt:

• Lump Sum Agreement – The more you can pay upfront, the better the discount the credit card companies will offer.

• Installment Agreement – If you don’t have the ability to pay upfront, you can negotiate over how much time you have to pay the discounted principal of the debt and over how many payments. Typically, the shorter the period of the installment agreement, the better the discount.

• Hybrid Agreement – Here you start with an incomplete lump sum payment, and the rest of the partial payment is made over time. The idea of the larger first payment is to make the creditor comfortable with entering an agreement where the installments will take time to pay.

For more information on credit card reductions – click here https://www.ny-bankruptcy.com/credit-card-reductions/

Another benefit of working with an attorney, especially one that also has experience with bankruptcies, is that the threat of you going bankrupt is often enough for most credit card companies to want to negotiate with you. By negotiating, they are least getting paid something. Unlike bankruptcy which completely wipes out credit card debt.

Speaking of…

Bankruptcy

If you only owe a modest amount on a few credit cards, bankruptcy may not make sense and negotiations would be the best way to fix the situation.  However, if you have massive credit card debt, are behind on your home and/or car payments, and have other overwhelming sources of debt, declaring bankruptcy could be the best way to start over.

Even starting the bankruptcy process will trigger what’s called an Automatic Stay, meaning the credit card companies can’t come after you for immediate payment.

For more information on credit card debt and bankruptcy – click here https://www.ny-bankruptcy.com/services/credit-card-debt-relief/

Although the bankruptcy will be on your credit report for seven to ten years, so would any judgments to creditors if the bankruptcy is not filed. Bankruptcy can be advantageous because it tells creditors that, although in the past you had problems with your debts, you have successfully resolved those issues. Also, after the bankruptcy, there are ways to repair your credit over time and bring your score back up to where it belongs.

For more information on credit repair – click here https://www.ny-bankruptcy.com/credit-repair/

The Next Step

Dealing with credit card debt can be stressful and a lot of work if you are trying to do it alone. Working with a highly trained attorney can get the job done faster and more effectively.

If you’d like to talk directly to a compassionate, knowledgeable, human being, reach out to New York debt reduction attorney Ronald Weiss for a free consultation. He can review what you want to do, and help you get the process started. Call 631-271-3737 and take the first step to a fresh start.