The problem with credit counseling for credit card debt relief is the process does do not address the elephant in the room. The discussion is always about budgeting and payments. But, what if the consumer in question simply cannot afford to pay their credit card bill without sacrificing monthly essentials, like the mortgage or rent, utilities, food, clothing or medical expenses? Well, then in that case there is bankruptcy, is what the credit counselor has been trained to tell you.
Bankruptcy is overkill for unsecured credit card debt. The simple solution of non-payment without filing bankruptcy will suffice. Bankruptcy is ALWAYS an option, IF the creditor takes you to court and IF the creditor wins a judgment.
Credit card banks plan for bad debts. They know a small percentage of account holders will undergo hard times and not be able to pay their credit card debt. That is why they charge high interest rates and service fees. The banks charge off bad credit card debt after six months of non-payment. Then the account becomes a negative mark on the consumer’s credit report for seven years. But, that negative is offset by positive payment histories once the consumer regains their income and their ability to pay their monthly obligations. While bankruptcy, recommended by the credit counselor for a failed debt management plan, is a ten-year bad mark on the consumer’s credit report.
Credit card banks give bad debts to debt collection agencies and eventually sell them to junk debt buyers for pennies on the dollar. So if you are not paying your credit card debt, you worry about debt collectors and collection attorneys contacting you for payment including added interest and fees.
If you educate yourself about the Fair Debt Collection Practices Act, you can protect yourself from debt collectors and collection attorneys with the properly written responses to their collection notices and calls. You have the legal right to dispute debts even if you DO them.
The reality is debt collectors are powerless and collection attorneys only want to sue consumers who they believe will not respond to their summonses. Your written responses will cause them all to spend their time more pliant debtors.
If you cannot afford to pay your credit card debt, then credit card debt relief for you is spelt N-O-N-P-A-Y-M-E-N-T. I owed $63,000 in credit card debt I could not afford to pay, and I successfully used the non-payment option.
Credit card debt relief is a learning experience. Regain your peace of mind. Read my posts on this site.