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Dealing With Bad Credit Card Debt
Michalis 'BIG Mike' Kotzakolios

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If you are facing a lot of bad credit card debt and have no resources to make good on the outstanding debt, it is time to take action. Here are some tips to help you wade through bad credit card debt, and begin the task of restoring your credit rating.

First, work with your creditors. If your bad credit card debt is due to the fact that you have lost your job or that a major illness has kept you sidelined for an extended period of time, many creditors are willing to work with you. Keep in mind you will not be able to use the cards during while payment arrangements are worked out, but if things are bad enough to merit this sort of conversation, you don't need to be using them anyway. Creditors have to spend resources on pursuing legal action to protect their interests. If it is possible to work something out with a customer carrying bad credit card debt, then they often will do so.

Next, look at your available resources. Do you have items or assets that are not being used that could be converted into cash? How badly do you need that second car? When is the last time you used those two bicycles in the garage? Converting unnecessary assets into cash and applying those funds to your bad credit card debt helps to indicate that you are serious about repaying the outstanding balances.

Last, look for ways to borrow the necessary funds to retire the bad credit card debt. Keep in mind that if you are fortunate enough to get financing from either a private source or a financial institution, then your first order of business after paying off the credit card debt is to make sure the accounts are closed. You do not want to deal with the temptation to accumulate more credit card debt before you are back on your feet financially. By doing all you can to retire bad credit card debt, you will soon be able to look past your current circumstances and see a brighter day coming.

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