What To Do If Credit Card Debt 80k Plus

Many consumers are faced with overwhelming financial hardship and have a substantial amount of debt. I have seen debt amounts from $200 dollars all the way to $629,589 in unsecured credit card bills. There are major differences between the average person that has $15k in credit card bills to the person that has above $80,000 in credit card bills.

Once the debt amount has grown to $80k or above the chances of the consumer paying off that debt becomes bleak. On that amount of debt payments would be above the $2,000/month mark and based upon your credit score the interest rates may hover around the 20% range. The combination of the compounding interest and the extreme monthly payments is a recipe for disaster.

Most consumers accumulate high credit card debt in a few ways. The first being a medical expenses and the other being a long term job loss. For some families if an emergency occurs and medical attention is required but not covered by insurance most people will result to credit cards to solve the lack of cash or savings issue. In certain instances a job loss depending upon the field could take 12-18 months to be rehired and when that rehire takes place you have to hope that you are getting the same rate of pay as before. During the 12 months that you are off work un-employment does always cover the costs of living and credit cards can be the crutch to get through tough times.

Before things get to out of control you should look into debt relief or seek debt counseling for your debts above $10k but debts larger than $80k require immediate attention. Debt settlement programs can help to reduce the total amount of debt that you need to payback and can provide you with one lower monthly payment in order to settle your debts in a efficient time frame.

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