Anyone with even a passing grasp of finance can confirm that two types of debt exist -- good debt, like many mortgages, and bad debt. The worst kind of debt is credit card debt, as many Michigan residents can attest, partially because of its high interest and its tendency to monopolize on poor spending habits to dig consumers in deeper. Thankfully, for those suffering under a heavy credit load, there are a variety of options available to assist in reducing and even clearing existing debt.
Seeking credit counselling can be a good place to start, since credit card debt often starts as the result of spending habits that could stand to be improved. It is also possible to seek out debt restructuring services that can help to consolidate existing debt under a single payment. Debt settlement is also an option, though it can be a complicated process to attempt without support.
Chapter 7 bankruptcy is an option that often works best for individuals or small businesses that can no longer afford to pay down minimum credit card payments. Chapter 7 allows for the liquidation of assets to help pay down debts. Chapter 7 can even be used to discharge certain existing debt.
Credit card debt can seem insurmountable at times, as Michigan residents can agree. However, it is important to remember that no financial situation is fully beyond help. Professional assistance in addressing debt relief challenges is available. It can benefit individuals struggling with credit card debt to research their options and find out which option is right for their particular debt situation.
Source: nasdaq.com, "6 Ways to Get Credit Card Debt Help", , May 31, 2014