Credit card debt always seems to be getting bigger doesn't it? Well, that is because it actually is getting bigger even if you pay it back monthly.
Creditors will tell you that you can clear your debt by paying the minimum amount each month.
I strongly recommend you don't do that, it is just another way for creditors to get more money from you as the years past and your debt doesn't seem to decrease.
Debt settlement companies will also tell you to stop paying the creditors if you want to apply for debt settlement.
If you have too much debt, you can eliminate it with a very thought out plan.
If you have more than one loan taken from different creditors you can try debt consolidation.
This process will sum up all your debt and grant you a loan to pay for them.
The point of debt consolidation is that the interest rates of the second loan are smaller than the ones practiced by the creditors, thus giving you the possibility to pay them back.
The true genius is when you mix debt consolidation with debt settlement.
Think about it.
You can take one big loan to pay for all your smaller ones, and then get it reduced by up to 60%.
Debt settlement can reduce your debt by negotiating with the creditors and offering them a deal so that you won't be forced to file for bankruptcy.
The thing is that you have to be sure from the start you want to do this.
Because if you take one single big loan and stop paying it back, you will receive harassing phone calls from the lenders, some people can't take this while others have no problem with it.
There are different ways to clear your debt, one of them being bankruptcy.
This is now as good as the previous mentioned ones, but can be good for some who don't want to get loans in the future and are just looking for a way out.
But for most consumers with deep debt it is better do eliminate 60% of it and just pay the rest, that your credit score wont suffer very much.