Curing Credit Card Debts
Credit cards are attractive to many due to the convenience that comes along with them. However, one can land herself in serious financial quagmire in the sense that they debt overwhelms her. This situation may lead one to a financial limbo as she will not move forward and will have to encounter the nightmares of the debt collectors.
Many in debt may opt to declare bankruptcy or sit back and wait for the consequences. This is definitely a disadvantage to the card provider and thus an amicable solution would be preferred.
One of the solutions out of this stale mate is for the credit card provider and the borrower to work out an amicable settlement and plan on how the debt will be recovered. The borrower will present her financial situations and her ability as per that particular time and this will provide a foundation in which the repayment plan will be developed.
A second option would involve the use of a mediator. A mediator would act as a go between the credit card provider and the borrower and will mid wife an amicable settlement convenient to both parties.
The factors to consider when selecting a repayment schedule should be as follows.
The repayment schedule should be very clear on detail pertaining to the total amount accruing and the plan of repayment.
The repayment schedule should be workable and quantifiably consistent and regular.
The repayment schedule should not inconvenience the borrower in the sense that it should be affordable and the borrower should be in a position of meeting the targets laid.
The repayment schedule should be as realistic as possible in the sense that it should not take forever and at the same time it should not be too demanding on the part of the borrower. A reasonable balance would suffice for both parties.
The mediator should come up with a repayment period that clearly defines the upper time limit. In situations where this deadline would be exceeded then a written agreement detailing the consequences should be signed by both parties.
Curing credit card debts is paramount as this is a determinant of a person’s credit worthiness in the future. It is also advisable to avoid the hassle of debt collectors and the stress that comes with it. Legal tussles may become inevitable if the debt remains unsettled. The best advice is to find a way out. The way out should not be running but rather settling the debt. Keep in mind that the future is governed by the present and therefore it is necessary and sufficient to secure this future with prudent present actions in all your credit card transactions and purchases as this will go a long way to affect you in the remote or immediate future dealings with some credit card issuers.