Credit Card Debt Got You Down? Here’s How We Can Help
Credit card debt can feel like quicksand – the more you struggle, the deeper you sink. But you don’t have to go it alone. At Delancey Street, we’re experts at helping people find solutions to overwhelming credit card debt. With customized debt relief programs, expert financial advice, and compassionate support, we can help you see the light at the end of the tunnel again.
How Did I Get Here?
First, know that you’re not alone. Credit card debt in the U.S. recently surpassed $1 trillion for the first time ever. There are many reasons people fall into credit card debt, including:
- Job loss or reduced income
- Unexpected medical bills
- High interest rates and fees
- Overspending and poor budgeting
It can happen gradually over time or seem to pile on all at once. Regardless of how you got here, the good news is there are solutions. The first step is acknowledging the problem so you can start mapping out a plan.
Assess Your Situation
Take some time to tally up all your credit card balances and interest rates. Make a list of monthly expenses like rent, utilities, food, transportation, and debt payments. Then compare your income to expenses – are you operating at a deficit each month? This exercise will help you understand exactly where you stand so you can make a plan.Some key factors in determining your best path forward include:
- Total credit card debt amount
- Interest rates on each card
- Minimum monthly payments
- Income and living expenses
- Other debts like medical, student loans, etc.
Know Your Options
There are a few main routes to tackle credit card debt:
Debt Management Plan
This involves working with a credit counseling agency like Delancey Street to negotiate lower interest rates and consolidated payments to creditors. This helps simplify payments and often saves money on interest.
Pros:
- Lower interest rates
- Single monthly payment
- Avoid late fees
Cons:
- Credit accounts closed
- Debt not reduced
- Missed payments can get you removed from plan
Balance Transfer Credit Card
Transferring balances to a new card with a 0% intro APR helps halt interest charges while paying down debt.
Pros:
- 0% APR intro period
- Focus on paying principal
- Potentially improve credit score
Cons:
- Balances revert to high APR later
- Need good credit to qualify
- Balance transfer fees
Debt Settlement
A company negotiates directly with creditors to settle debts for less than owed. This can reduce balances but will damage credit
.Pros:
- Settle debt for less
- One payment to company
- Fees only collected if debts settled
Cons:
- Hurt credit score
- Risk collections and lawsuits
- Possible tax implications
Bankruptcy
As a last resort, filing Chapter 7 or 13 bankruptcy can eliminate credit card debts entirely.
This provides relief but severely damages credit.
Pros:
- Eliminate credit card debt
- Stop collections calls and lawsuits
Cons:
- Damaged credit for years
- Lose certain assets
- Complex process
Tips to Avoid Scams
Unfortunately, predatory companies often prey on those struggling with debt. Be wary of any company that:
- Charges upfront fees before settling debts
- Guarantees they can erase your debt
- Tells you to stop paying creditors
- Pressures you to put money in a specific account
Stick to reputable non-profit credit counseling services and be cautious before agreeing to any debt relief program.
Let Us Help You Find Relief
At Delancey Street, our goal is to help people struggling with credit card debt find an affordable solution tailored to their unique situation. Our expert financial advisors take the time to understand your full financial picture before making recommendations.We can help you:
- Assess your total debts and monthly budget
- Negotiate lower interest rates with creditors
- Set up debt management plans to consolidate payments
- Explore balance transfer cards and loans
- Avoid credit repair scams and predatory companies
Our services are always provided on a non-profit basis – we’ll never charge any upfront fees. Take the first step and schedule a free consultation today. There’s no obligation to enroll in any program.With compassionate guidance and smart debt relief strategies, you can break the debt cycle and regain control of your finances. Don’t wait – relief is possible if you take action. We’re here to help you find the light again.