Seniors Escalating Credit Card Debt – How to be Debt Free

Seniors Escalating Credit Card Debt

:: by Karl Edmunds ::

Today’s market conditions have forced more and more seniors to rely on credit card debt just to get by. While this may be a short term solution, too many seniors are facing long term insurmountable debt levels.

Reducing or eliminating credit card debt often seems like a lot of effort with little results. But be assured that every step you take toward debt freedom counts and moves you in the right direction.

There are basic things you can do to accelerate the process of getting out of credit card debt. If you’re in over your head and your best efforts don’t seem to be enough, try one of the strategies below to make your debt load a little lighter.

Debt Settlement

Debt settlements are generally reserved for people who cannot make their monthly payments and don’t have assets to draw from. It’s a drastic measure, but one that is sometimes necessary for getting free of burdensome credit card debt.

Negotiating a debt settlement can mean that you approach your credit card company, explain your situation and ask them if they’re willing to work out a plan with reduced payments or even a reduced overall balance. Sometimes, it’s as easy as that. Each circumstance and situation is considered independently so the outcome is often unpredictable.

If your credit card company refuses your initial request for debt settlement, a non-profit debt counseling service may be able to help. Because they are non-profit, they won’t exploit your situation, and they have experience working with difficult credit card companies.

There are downsides to a debt settlement. For example, any money the credit card company takes off your bill will be credited to you as income. This means that you will owe taxes on that amount. While this can still be better than the debt you faced before, make sure that debt settlement is right for you before you pursue it.

Debt Consolidation

Debt consolidation is another option to manage credit card debt if you are disciplined. It is a good choice for people who can make their minimum monthly payments but aren’t making much headway towards paying off their debt or who would benefit a lot from having a lower interest rate or a lower monthly payment on what they owe.

Debt consolidation doesn’t wipe out debt. It only combines all of your debt with one loan, which you then pay off at a lower interest rate and perhaps a longer term. But it can end up costing more by extending the length of time needed to pay off the consolidated debt.

And it is even more tragic if you consolidate your credit cards to a home mortgage for example and then proceed to charge up the balances on your cards again. The only road this leads to is bankruptcy.

Whether you choose debt settlement, debt consolidation, or another path all together, remember that getting out of credit card debt is possible and that there are constructive options to accelerate the process. Your dedication to lowering your debt will eventually pay off and you will be able to live debt free.

About the Author
For more than 20 years, Karl Edmunds has been a noted author within the business and management consulting arena. As a senior, he now engages his curiosity and observations about life to write about key issues of importance to the growing community of seniors (Boomers), and the value of living life to the fullest every single day. Give me your comments and suggests at http://SeniorRetirementTrends.org