Freedom From Debt -How to Wipe Out Credit Cards

So what are the warning signs you should watch out for? And how can you cope? Sadly, the terrible impact of the credit crunch is becoming more and more obvious. There have been many stories in the press and on TV about desperate debtors who have committed suicide after failing to see a way out of their financial troubles. And those are just the people we hear about. There may be many other thousands – if not millions – of other people who are suffering alone in silence.

The Samaritans have reported that the number of calls to their city branches have risen significantly in recent months, as even high earners feel the pinch. Unless you’re on the frontline, like these charities, it’s all too easy to read statistics like “repossessions by mortgage lenders are up 48% in the last year” or “applications by homeowners for insolvency increased by 17% in 2008”, and not see the thousands of personal, human tragedies behind them .

The debt charity Credit Action claims the debt problems people call in about are much more serious than they were a year ago. In fact some callers are in such a state that they have called up in despair for advice while holding a loaded gun in their hands.

What are the warning signs to look out for? Anyone of us can fall into debt. The question is at what point does it become a serious problem? One of the key warning sign that you are at risk of falling into serious debt problems is the discovery that you are borrowing just to keep on top of your monthly expenses. In other words, you are paying for regular outgoings using credit cards or an overdraft because you are exceeding your income every month. The moment this starts to happen, it is a good time to seek help. First, try to establish if you can cut down your expenses in any way. But what if cutting back is simply not possible? What if the situation is already quite serious and you are being hassled by creditors or mortgage lenders?

You need to seek out assistance. But be careful about who seek help from. Many companies will try to take advantage of you while you are in this desperate situation. For example, some unscrupulous insolvency practitioners may try to convince you to enter into an expensive and unsuitable insolvency agreement. Similarly, if you’re a homeowner who is facing repossession, you may also be offered the chance to sell your home and rent it back. This is an extremely dangerous way to get out of debt.

Three really good places to go to in order to get help.

You can do all three simultaneously – and none of them will cost you a penny:

Firstly, consult a debt charity.

The Consumer Credit Counselling Service is the first place I would recommend. The Consumer Credit Counselling Service, at least, should be able to provide practical help as well as advice. They can speak to your creditors on your behalf and try to negotiate a solution for you, so that you can make affordable payments and still pay off your debt. If you are struggling with your mortgage, for example, they can speak to your lender and ask them whether you can reduce our payments to a more affordable level or take a payment holiday. Most importantly, they will sit down with you and go through everything you owe and explain all the jargon

Citizens Advice Bureau is excellent too but beware there is usually a waiting list.
They are experienced at dealing with the highly complex and stressful situation you are in. Their advice is 100% free.

National Debtline is a good place to contact too.

Secondly, contact counselling charities Mind or Relate for practical advice.

If you are very deeply in debt, you are without doubt under a lot of pressure and stress. It is often this stress which drives people to despair. If you feel depressed, don’t suffer alone. Contact counselling charities Mind or Relate for practical advice on how to deal with the emotional and psychological impact of debt. Don't ignore it or bury your head in the sand, because this will inevitably make the situation worse.

Thirdly, ask for support.

Join discussion groups, forums and any groups and communities which can help and support you. You can search these on line or in your local community. This will help you to feel you are not alone in your worst moments.

Fourthly, wipe out your credit cards and loans.
This is the option which helped me most when my property business went under leaving me with large credit card debts - was to look at the contracts of the credit card agreements I signed. There is a new claims industry which can literally, wipe out your credit card and loan debt if the contract was signed before April 2007. This is because many lenders did not write the contract correctly taking into account the law as laid down by the 1974 Consumer Credit Act. My agreements were audited and had numerous breaches in them. I have claimed to have them written off. I have had offers of 60% reductions in the balances so far and I anticipate a full write off any day,

It is very, very difficult to face your debt, and there's no secret way to make it go away. But there is always an answer to any debt problem and that answer should never, ever be suicide. So hang on in there and remember, you're not alone. Just don't give up hope!