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Discharge of Debt – Cutting my Credit Card Bills

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Discharge of Debt - Cutting my Credit Card Bills
Discharge of Debt - Cutting my Credit Card Bills

There are many companies out there offering ways to discharge of debt on your credit card. While this sounds like a great idea, you need to get more details.  After all, if it sounds too good to be true, it probably is.

What these companies are not likely to tell you is that they usually reduce your income by getting the credit card companies to discharge some of your debt.  Which may sound great but will have a very negative effect on your credit score. Thus, while it may help you in the short term, in the long term doing this will result in higher interest rates the next time you try to get a card, vehicle, or house.

In the past, many people dealt with credit card debt by taking out second mortgages on their house to pay off the debt. Now, however, it is difficult if not impossible to do that in many states due to the declining home values and reluctance of banks to lend money.

The best way to get rid of debt without negatively affecting your credit score is to not accumulate debt in the first place.  However, if you do have the debt, you need to come up with a plan to get rid of it.  Start budgeting to pay a certain amount of the credit card each month and don’t put anything extra on the card.  It is nearly impossible to pay off a large credit card debt if you keep putting more debt on the card.  While that can be very tempting this time of year, to get ahead you have to say no.

One way to keep from spending on your cards is to keep them in a safe or drawer rather than your purse.  If the credit card isn’t always right there tempting you to use it, you will be more likely to just buy spend wisely because you know the money is coming directly out of your account rather than thinking about a bill that will have to be paid someday in the future.

Once you get out of the habit of reaching for the card for impulse purchases, you will be amazed to realize that you don’t really need the credit card as much as you thought.  Try living without a credit card for 3 months.  At the end of that time, you will likely realize that you haven’t even missed it and that your finances are in a better position because you are watching your spending more carefully.

The best way to get a discharge of debt is to not have it in the first place, but if you do have debt that you need to get rid of, put the card in a place you won’t be tempted or cut it up.  Then, set aside some money each month to start paying down the balance.  I would also recommend using any extra money you receive such as your income tax return or some extra cash from friends or your boss at Christmas to pay down a little extra on the debt.  Life really is much simpler and less stressful without debt. Try it and I’m sure you will feel the same.

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