WemonAde.com When Life Gives You…

It is once you undertake that next step of leveraging debt against debt that you know things are getting out of control. This is when you begin repaying off one credit card with another. Now there are reasons to do this such as moving credit card debt from a high interest account to another that is doing business more helpfully for you. However you have to watch over those ‘deals” as frequently there are transfer payments or other unknown expenses to creep up on you. And if the lesser rate is a “limited time offer”, the advantage of the lower interest rate for a few months may not be worth the added payments. And if that new credit card carrier then jacks your costs up higher than they had been on the old creditor, you are worse off than before.

When the credit card debt then begins to develop into a real problem the nextstage begins to take advantage of your assets. You can take out a second mortgage and get a pretty good rate that is controlled as that is what they termed a ‘secured loan” which means you are using the equity of your house as security to combat the credit card debt. But these kinds of loans are dangerous as if you did default on them, you could lose your home.

When the credit card debt begins to get critical over again, even despite all these grave measures you have taken, you can get pretty panicky. Plus you can get bitter because there is no question that the credit card firms appear to do all they can to keep you trapped in this credit card debt as long as they can. And why shouldn’t they after all? They make a lot of wealth off of your credit card debt. And they don’t have to do anything to keep it rolling in.

This is why when it comes to making a decision between just starting to fail to pay on the credit card debt, it might be time to pull out the stops and go after the credit card companies to put a stop to the escalating debit. Although you can put a stop to it by calling them directly and not being frightened to play the ultimate card, the “B” card – bankruptcy.

Now, declaring bankruptcy has become more difficult since the current administration in charge of our government made it harder for ordinary folks like you and I to utilize this tool to end the continual growth of our credit debt. But it still is possible to utilize bankruptcy and if you do, the credit card companies can lose all of that money. And they know it too. Now you don’t want to threaten bankruptcy unless it actually is a possibility for you. But if it is and you call the credit card companies and let them know this is your next step, you unexpectedly have all sorts of influence with them.

Once the credit card firms know you are serious about going that way, if you tell them you would like to work out a deal to pay off some of the credit card debt you owe, they may well be very open to reducing your debt by half or more. And if you can get that sort of deal from each credit card company you owe and you can get them to reduce your interest rate to make your capability to pay more realistic, you might be able to avoid the bankruptcy entirely. And if that is the result, you did a good job of showing the “B” card but not at all having to play it.

There are two complimentary reports here to help you decide what is best for you, please click on the links below:

For a free 66 page report called “Debt Crisis” http://www.makeyourmoneywork.smarter-not-harder.info/Debtcrisisa.xhtml
Or a free 64 page “The Bankruptcy Recovery Guide” http://www.makeyourmoneywork.smarter-not-harder.info/TheBankruptcyRecoveryGuidea.html