Dealing with Credit Card Debts in North Carolina
If you are one of the people in North Carolina struggling with credit card debt, you need to know you are not alone.
The low introductory offer plus easy balance transfers have lured many people to acquire more credit cards than they could repay leading to high debts.
Fortunately, there are steps to take to reverse your current situation. It is extremely important to take action to halt the accumulation of your debts and prevent your creditor suing you.
It is worth noting that the statute of limitations for debts in North Carolina is 3 years. This applies to auto loans, credit cards loans and installment loans. Your creditor have 3 years to sue you from the date of your last activity on the card.
Evaluate your current situation
A certified budget councilor at Transformance once said that the first step to lower your credit card debt is to assess your financial situation.
It is important to know how much you owe in order to track your progress. Some people will say they owe $8000 when in reality it is over $10,000. Write down your debt, name of the card, monthly due date, minimum payment and interest rate on every card that you have.
Take note of the credit card that has the highest interest rate. It will be wise to tackle that credit card first.
Ask Creditors for a lower rate
Call your credit card company to negotiate for a lower interest rate. You will save hundreds of dollars with a lower interest rate. Before calling your creditor, know how much you owe them and the interest rate of the card.
Credit card companies do not like losing customers especially if they have good credit scores so you have room for negotiation. It will help if you have been making your payments on time.
Once you are prepared to negotiate, call their customer service number and politely explain why you need a lower interest rate. It can also help if you speak to the manager who might have more decision making power.
Debt relief Options in North Carolina
There are many debt relief options in North Carolina. They include consumer credit counselling, debt management programs, debt settlement, debt consolidation and bankruptcy.
If you feel like you are drowning in debt, consider these debt relief options.
Consumer credit counselling
Consumer credit counselling programs help a lot families and individuals get out of debt and manage their money more effectively. Mostly are run by non-profit agencies that charge less for their services.
They offer credit counselling and are sure to get highly trained and certified individuals who will assess your current financial situation and provide personalized options based on your financial goals.
North Carolina residents can benefit a lot from this. You will be put on a debt management plan where you will be making affordable monthly payments.
This is another debt relief option that can work well for many people who have debts. A company negotiates on your behalf with your creditor to reduce your debt.
The debt settlement companies may be successful at reducing your credit card debt or may not. Keep in mind that there is no guarantee the company will be able to reach a debt settlement agreement.
Debt Settlement Programs in North Carolina
A debt management program will educate you on how to successful manage your debt. Companies that offers this program in North Carolina work with creditors to reduce interest rates and monthly payments on your behalf.
It will help you reduce your credit card debt and regain control of your finances as well. The other benefits of these programs include:
-Making timely payments
-You credit score will improve over time
-You will stay more organized with a program like this
-No more collection calls hence you will get peace of mind
There are other programs that helps you pay off your debt to multiple creditors with a single monthly payment.
Debt consolidation is the act of merging several dates such as credit card debts and auto loans into 1 new loan. It is an effective debt relief option for people in North Carolina overwhelmed by loans.
With debt consolidation, you get favorable payoff terms such as lower monthly payment and interest rate.
Pros and Cons of Debt Consolidation
-Certified debt consolidation experts will find for you loans with lower monthly payments and interest rates
-No more calls from your creditor hence you will have peace of mind
-Several consolidation companies to choose from. The competition between companies that give consolidation loans could mean low interest rate.
-You will be making timely payments and this will improve your credit score
-You will feel a wave of relief, no risk of being sued by your creditor.
Before you consider this option, ensure you do your research well about the company you will use. Know about its operation, terms, just to name a few.