To find out how badly in debt you are, use the debt reduction calculator below. It stores no personal information, but answers the question; how long it will take you to pay off your credit card debt, if you can afford to do that. (Do not use commas or decimal points, e.g., $50,000 at 20%, $1000/month would be 50000, 20 and 1000.)
Today, one in seven consumers is faced with the non-payment payment option for dealing with their credit card debt. Typically that option is expressed as bankruptcy. That is where you pay a bankruptcy attorney and trustee to help you “solve” your debt problems.
For credit card debt, sometimes there is only one simple option; non-payment.
You should have a debt reduction plan, but if you reach the point where you cannot pay off your credit cards, do not sacrifice monthly essentials for those bills. Just stop paying them. Keep making home mortgage, auto loan, healthcare, etc. payments. The non-payment option means you, like every other seventh consumer will be contacted by debt collectors and collection attorneys threatening you with court action. And, since you owe, how could you possibly defend yourself against court action for a credit card debt? Psst. Debt collectors and collection attorneys do not want you to know this, but consumers who owe can fairly easily defend themselves against credit card court action. There have been a lot of news stories lately about robo-signing (You can read the detail in my recent blog.). Collection attorneys and junk debt buyers, and even credit card banks themselves, have difficulty documenting the historical detail of our credit card debt. They cannot produce a signed contract because there is none. And, their biggest problem is finding someone who has actual personal knowledge of our credit card account; someone to sign an affidavit attesting to the accuracy of copies of monthly statements or signed applications, or whatever weak documentation they hope will serve to bully us into submission.
The cure for credit card debt you cannot afford to pay is non-payment and learning to be a sophisticated consumer commission-paid debt collectors and attorneys would rather not spend their time with.