In recent years, more individuals than ever are faced with mounting credit card debt and even those with good credit are struggling with the soaring interest rates on their current balances due to the fact under the new guidelines credit card companies can reduce the credit limit or increase the interest rates as long as they give prior notification. This makes it increasingly difficult to even make the minimum monthly payment required or to reduce credit card debt. Fortunately, there are many consumer protection laws that can be used to legally reduce or eliminate your credit card debt.

While filing for bankruptcy may seem like a beneficial option when you are in serious credit card debt, there are newer bankruptcy laws that no longer allow unsecured credit card debt to be automatically eliminated. There are now payment plans under the new laws that require you to pay back the money over a five year period with more and interest and your credit is still ruined for a period of seven to ten years. Fortunately, there are numerous ways that you can reduce or eliminate your credit card debt on your own using the same methods that an attorney or debt counselor would use if you were to hire them.

In many cases, a credit card settlement can be obtained which is typically a lump sum payment of approximately twenty to thirty percent of the total debt; however, the credit card company will usually require that this amount be paid in full. This may be a good option if you have savings or home equity that you can borrow against to pay the reduced amount. You can also get some credit card companies to reduce the interest rate on the credit card balance simply by calling and asking them. If you would like more detailed information on how you can legally settle credit card debt on your own without having to pay a debt counselor or attorney, please visit us today!