With all the credit card debt rising each month in United States many Americans have turned to the Internet for a solution on eliminating credit card debt.
A solution that we have come across for those who have less than $10,000 in debt is twofold.
(If you have over $10,000 in debt recent changes in Congress allow you to erase 50% of it.
) However, for those who have less than $10,000 we will go over a plan that can help you get an economical way out of your debt load.
401(k) plans 401k plans allow to borrow up to 50% of your total investment.
This plan is only advisable for people who are in a steady position and do not plan on changing jobs.
If you do decide to leave your job, you will be sent a bill from the IRS if you're under the age of 60.
If this is going to be a part of your plan, the best thing to do is take care of all your obligations before you do change jobs.
Eliminating credit card debts by negotiating with your creditors.
If you have a 401(k) plan or if your balance is not large enough in your 401(k) to borrow against, you may want to call your creditors and ask for a schedule of repayment.
You can then begin negotiations with your creditor and explain to them that you be looking for low interest loans in order to pay off your credit card debt.
Speaking the language of the financial industry is very important when you're making these phone calls.
Another tip is to call your bank and tell them that you are very close to filing bankruptcy and that you need a low-interest loan.
Again, this is advice for people who have under $10,000 in debt, those with over 10,000 have legal rights to erase it.