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Tips for Michigan consumers with credit card debt

Debt is a situation that many consumers are faced with. Credit card debt is one of the most common and is often the most difficult to pay off when only remitting the minimum payment. In some instances, a Michigan consumer is in such a financial bind that they cannot even pay the monthly minimum.

One strategy to use if someone cannot make the monthly minimum is negotiating with the credit card company. This is a good technique for someone who has some cash, but not the whole amount. Consumers can ask the company to accept half of what is owed for the month, which may stop a missed payment from appearing on their credit report. Even more so, it may help prevent the debt from being sent to a collection agency. After negotiating a deal with the company, it's recommended to pay the remaining balance for the month before the 30 days is up.

If someone is unable to pay anything at all, then another strategy is to just be honest with the card company. This can be beneficial to consumers since there may be other options available for those who are in a financial dilemma. Some options may include adjusted payments or a due date extension. It's recommended for consumers to try to earn extra income, such as with a second job or by babysitting perhaps.

Having a large amount of credit card debt that cannot be paid off can be stressful for most Michigan consumers. Making adjustments to someone's budget can help reduce the amount of debt they owe, even if they cannot completely pay it off. If a consumer has exhausted their financial resources and they do not know what else to do, bankruptcy may be a suitable option to get one's financial situation in order.

Source: nerdwallet.com, What Should You Do If You Can't Make Your Credit Card Payments?, No author, Jan. 18, 2014

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