Nearly every single day, I hear someone say that they need help with their debt and are looking for credit card relief, but they don’t know where to turn.  As a financial counselor, and as someone who knows how difficult it can be to struggle with credit card debt, this is very frustrating to me.  There are legitimate places to turn when you need credit card debt relief options, but unfortunately, it is not easy for most people to know what is a scam and what can really help you out.

For everyone out there searching for help, today we will take a look at how you can find the help you need and avoid getting ripped off.  While parts of this post may apply to debt in general, keep in mind that I am specifically addressing those of you who need help with credit card debt.  If you are primarily struggling with collections accounts, medical bills, student loans or other types of debt, this article may not apply to your situation.

Credit Card Relief Programs

If you are searching online for debt relief companies or credit card relief programs, you are most likely to come across some sites promoting debt settlement programs.  Advertisements promoting debt settlement or “credit card debt negotiation” often sound very attractive to those of us who are struggling.  However, many times, these advertisements are too good to be true.

Debt settlement programs often charge excessively high fees and rarely deliver on all of the benefits that they advertise.  Before considering a debt settlement company, be sure to fully research the pros and cons of debt settlement.

Personally, I would not recommend a debt settlement as a method of reducing your debt.  However, if you are determined to take the settlement route, keep in mind that you may be able to save thousands of dollars negotiating credit card debt on your own.

Hardship Programs for Credit Cards

So now that we have ruled out debt settlement as a viable solution, you are probably wondering where you can get help with your debt without getting ripped off.  The solution that will work best for you depends on your situation.

If you are temporarily out of work, had a sickness or financial setback, or some other TEMPORARY bad luck that got you behind on your debt, your best bet is to call your credit card companies first.  I realize that this can be a huge pain in the you know what, but it may be worth it to you.

Your creditors will often offer you a hardship program, usually lasting 6 months or a year, which will usually give you a break in your interest and a lower payment.  They may even waive late fees to help you get back on track.  However, these programs are usually only offered to people who have had a temporary setback and are getting back on track, or will be back on track in a specified period of time (usually within a couple of months).  These programs do vary from creditor to creditor, but if you only have 1 or 2 major creditors it is well worth the hassle to speak with them and work something out.

Credit Counseling for Debt Relief

If your situation is not short term and temporary, your creditors refuse to help you out with a hardship program, or if you have several accounts and it is impossible to workout hardship plans on most or all of them, you should consider speaking with an accredited, non profit credit counselor.

Credit counselors can help you find options you may not have thought of or know that you have, and they can enroll you in a debt management plan.  This type of plan is a lot like the hardship programs discussed above: you may be able to get reduced interest rates and lower monthly payments.  Unlike the hardship plans, debt management is not short term but is instead  designed to get you completely out of debt.

Unfortunately, there are some credit counseling agencies that are not great and can rip you off or hurt you more than they help, so you will still need to use caution and do your homework.  Check with the Better Business Bureau and do a little research on any agency you consider working with.  A good place to look for a reliable agency is through the National Foundation for Credit Counseling.

Tags: credit card relief, credit card relief programs, credit card relief services, debt management plans, lower interest rates, lower payments, reducing your debt, relief from credit card debt