Steps to Realistically Be Credit Card Debt Free in 1-3 Years
There are many persons who planned to repay their credit card debt in a span of six months.
They try their level best and barely succeed in the first month.
They end up failing in the second month and conclude in a third month that repayment of credit card debt is not possible.
Such persons fail to realize that trying to repay debt incurred over a span of many years over a span of six months is an impractical plan.
If you want to be realistic in repayment of your credit card debt, you should give yourself at least 12 months.
Anything less than that is a big bonus but there is no point in straining your finances and spoiling your planning just to get rid of your debts in six months.
If you adopt such an approach, you may end up incurring credit card debt all over again in the ninth month.
Prepare a list of your assets, liabilities, income and expenses and find out whether you are in a position to repay your credit card debts on time.
If yes, you should proceed to prepare a plan and stick to it properly.
On the other hand, if you conclude that prompt repayment of credit card debt is not feasible, you should go in for a smarter plan.
Realistically, if you cannot repay your credit card debt in a span of 12-18 months, it is important to go in for a discounted deal so that the amount comes down to manageable levels.
Why would your lenders agree to such a deal? Well, when you cannot repay your credit card debt over a span of two years, it is obvious that you may go in for bankruptcy even if things go out of control.
Lenders do not want such a strategy on your part.
That is the reason why they may be prepared to help you out by offering a 50% to 70% discount on the total amount owed.
Another realistic option that you can opt for is to use your assets to manage your liabilities.
This is useful option if you are at the brink of bankruptcy.
You can go in for sale of your assets so that you can repay your liabilities including your credit card debt.
Even if you have $10,000 left in your hand as extra cash, you can use this option to avoid bankruptcy and start from scratch.
However, this is not a practical move because most of us have liabilities that are far in excess of our assets.
They try their level best and barely succeed in the first month.
They end up failing in the second month and conclude in a third month that repayment of credit card debt is not possible.
Such persons fail to realize that trying to repay debt incurred over a span of many years over a span of six months is an impractical plan.
If you want to be realistic in repayment of your credit card debt, you should give yourself at least 12 months.
Anything less than that is a big bonus but there is no point in straining your finances and spoiling your planning just to get rid of your debts in six months.
If you adopt such an approach, you may end up incurring credit card debt all over again in the ninth month.
Prepare a list of your assets, liabilities, income and expenses and find out whether you are in a position to repay your credit card debts on time.
If yes, you should proceed to prepare a plan and stick to it properly.
On the other hand, if you conclude that prompt repayment of credit card debt is not feasible, you should go in for a smarter plan.
Realistically, if you cannot repay your credit card debt in a span of 12-18 months, it is important to go in for a discounted deal so that the amount comes down to manageable levels.
Why would your lenders agree to such a deal? Well, when you cannot repay your credit card debt over a span of two years, it is obvious that you may go in for bankruptcy even if things go out of control.
Lenders do not want such a strategy on your part.
That is the reason why they may be prepared to help you out by offering a 50% to 70% discount on the total amount owed.
Another realistic option that you can opt for is to use your assets to manage your liabilities.
This is useful option if you are at the brink of bankruptcy.
You can go in for sale of your assets so that you can repay your liabilities including your credit card debt.
Even if you have $10,000 left in your hand as extra cash, you can use this option to avoid bankruptcy and start from scratch.
However, this is not a practical move because most of us have liabilities that are far in excess of our assets.
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