SOURCE: Total Debt Relief

September 30, 2010 16:00 ET

Assessing Debt: When It's Time to Get Credit Card Debt Help Total Debt Relief Explains

LOS ANGELES, CA--(Marketwire - September 30, 2010) -  Assessing debt can be a stressful task for those consumers struggling with credit card debt. For some it is a constant reminder of how out of control their spending has become. Consumers should know that assessing their financial situation, more specifically their debt, is one of the most important aspects of achieving debt relief.

Like with most things in life, debt is relative. Knowing when one's credit card debt is too much depends on their unique financial situation. As a general rule, some financial experts say if more than 20% of your income goes to non household debts, such as credit card debt, then that is too much (source: Yahoo Finance).

Once a consumer realizes they need credit card debt help, the search process begins. There are a few debt relief programs available to consumers, the first one being bankruptcy. Bankruptcy is the most popular form of debt elimination and has been around for many years. While bankruptcy uses the court system to relieve debts, it leaves the consumer with a hurt credit score and in most cases requires the help of an attorney. The attorneys usually charge fees for declaring.

Debt consolidation is another option, but falls more in the debt management category. Debt consolidation requires taking out a loan to cover multiple debts, essentially combining multiple debts into one. This helps consumers to organize their debts and make payments to one large loan instead of multiple ones.

Debt settlement is another debt relief method that actually eliminates debts when successful. Consumers who enroll in debt settlement programs make monthly payments to the settlement company which will in turn pay the creditors. The settlement company acts as a mediator between the debtor and creditor. The goal of the settlement agent is to negotiate the overall debts owed. If negotiations are successful they might be able to reduce the debt by up to 50%. The program only works if the consumer remains in the program for the entire duration. Debt settlement programs vary in length depending on the type of debt owed and the amount. Credit scores will also be affected.

Consumers should speak with representatives of such programs before enrolling to ensure that they qualify and determine if it is the right option.

Total Debt Relief offers consumers a free debt evaluation which can be taken advantage of at their company website:

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  • Contact:
    Rob Jones