A Bankruptcy Lawyer’s Blog

Credit Card Debt Tips to Avoid Bankruptcy

Many consumers today, more than ever, are struggling to make ends meet in the face of economic crisis. Unexpected job losses and lack of available employment add up to the burden. For credit card holders, they are confronted with increased interest rates and fees imposed by different issuers.

And although there had been changes made in the Credit CARD law which were meant to protect consumers from bad debt, cardholders must still face the fact that there is still no cap limit on credit cards with variable rates. If you are a credit card holder struggling with debt, what can you do to avoid bankruptcy? Given the situation, how can you protect yourself from financial disaster?

Review your personal credit history.

Annualcreditreport.com offers all consumers the privilege to get one free credit report each year from each of the three major credit reporting agencies (Equifax, Experian, TransUnion). Get a copy of your personal credit file and check all the charges in your credit card accounts. Verify all the payments you have made.

If there are charges that you know have been paid yet still appear as unpaid in your report, you must take action to correct such errors right away. Remember, incorrect information can significantly pull down your final credit score. Send a letter of dispute to the credit bureau and request for corrections.

Review your credit card’s terms and conditions.

Has your interest rate increased or are there unexplained charges in your bill? If so, do not hesitate to speak with a supervisor of your bank and ask about the changes made in your terms. If you know that you have been a good customer, then request your credit card issuer to bring back the rates or terms that you originally signed up for.

Some consumers may think that making such a request is not possible. Granted, some credit card companies may insist on keeping their own terms. However, keep in mind that your issuer will not volunteer to lower your rate or waive your fees unless you try to make the request. In any case, it is always worth the effort to try especially if you have been a long time customer and a good payer.

Negotiate your debts.

If you are having trouble submitting your monthly payments on time, the worst thing that you can do is hide from your credit card issuer. The most sensible action to take is to speak with a supervisor of your bank and explain your present financial situation. Why are you not able to make payments on time?

Request your issuer if your deadline of payment can be adjusted and if the late penalty fee can be waived. If you have a valid reason for not submitting payment on time, then your creditor will most likely to consider your request. If your bank agrees with your pleas, do your best to submit your payment on the date you promised.

Seek professional help.

If speaking with your credit card company does not give you relief with your credit card debt, seek help from a legitimate credit counseling agency. The National Foundation for Credit Counseling offers debt relief advice for consumers in need.

Suzy Vanstrusen is a credit analyst and a writer of the website http://www.ezcreditrepairsolutions.com and has been providing consumers with tips and tricks in repairing your credit. Check the site for more free credit repair solutions and easy credit report score.