Credit Card Debt, Free Yourself From It

2007-02-16T09:39:00.000-08:00

by Amanda Williams

People think that after filing for bankruptcy due to the excessive credit card debt, they have to live for in the dark for a period of time as if it were a punishment. But people are wrong. There are many ways to recover your credit score if you just filed for bankruptcy. Credit card debt is not the end of the world and bankruptcy can be a hard solution, which can bring on side-effects that will for sure affect your current situation.

Credit card debt will turn your credit score to garbage because the companies which lend you credit, are doing it on good faith; they are not asking for any assets as insurance, they trust you will pay back everything you spent, as it is intended to be.

Hence, credit card debt will appear on your credit score after filing bankruptcy, therefore you will need to be very patient for at least 2 to 3 years after filing for bankruptcy to start rebuilding your credit score and repair what the credit card debt has done to it.

Stephen Baker is a current client of ours, Debt Remedy, and he is currently trying to fix his credit card debt. Amanda Williams, professional counselor and expert on credit card debt is following his case to guide him on how to repair the credit score and how to rebuild his credit life.

Stephen Baker:
After the waiting the period, how am I supposed to fix what the credit card debt did to my credit score?

Amanda Williams:
After the waiting for the aforementioned period, which goes from 2 to 3 years, you can apply for a new credit card. But it has to be the secured kind. If you want any credit company to take a look at you and not see in their files that you are a credit card debtor, you will need to assure them. The only way to do it, is securing the credit card with a property of yours. This way they have something solid on you.
Look out for secured credit cards that do not have an annual fee because that can be one more item to pay and remember to be extra careful when giving out your social security number.

Stephen Baker:
How much can I receive due to my previous history with credit card debt?

Amanda Williams:
Do not expect too much. Because of your history with credit card debt, companies will not easily lend you a high credit line. Do not even think about a $9000 credit limit. Lenders will have to check your history and see that you are making progress; that you are trying to fix your credit card debt problem and what is more important is that you will not fall in it again.
Remember to be constant. It is extremely important that you not be late with the monthly installments. Because all lenders will notice that, and any indication that you are heading back toward credit card debt will be the last chance you will ever get.

Stephen Baker:
How can I convince lenders that I no longer am a credit card debtor?

Amanda Williams:
All you have to worry about is your current financial situation; how strong it is.
Credit card lenders will notice how your progress is moving along. You can also convince them that you have changed, that you are no longer a credit card debtor. Let them know that they can check your progress and show them how you have handled everything since filing for bankruptcy. If they turn you down for a major credit line, do not take it personal. Just look elsewhere to get that credit line.

Stephen Baker:
What else can I do to show them I will no longer fall into credit card debt?

Amanda Williams:
To show them that you no longer have interest in being a credit card debtor, you must take care of your credit lines and your current payments. You should check your credit score once in a while to make sure everything is in order, and that the credit report is accurate to steer clear of unpleasant situations whenever you ask for a new credit card.
You can receive the credit report from your bank every year for free or ask for a new one for a small fee.

We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at the different situations on debt related topics such as credit card debt, that people can fall into and how to keep yourself a debt free person.
Check these links to learn more:

http://www.mydebtremedy.com

http://www.curadebt.com

---
Amanda Williams is a contributing writer to http://www.mydebtremedy.com
Is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy.
For Free Information on Credit Card Debt and Debt Help Consultation, call toll-free 1-877-850-3328