Frugal Tips

Frugal tips for all. Simple ways to save and earn.

If you owe more than $10,000 on a credit card, it is time to reconsider the way you are paying your debt off and contact your credit card company.

As soon as your credit card debt reaches 10K you are considered to be a customer worthy for negotiation. You will most likely be eligible for a debt settlement program, which will help you reduce your debt pretty fast.

Credit card companies are not being altruistic by offering to reduce your debt. When you owe thousands of dollars to them, which are mostly interest anyway, you are a major risk for them.

Credit card companies know that if your financial situation is getting worse, you may file for bankruptcy, which will make them lose your money. It is much better for them to offer you some sort of debt settlement plan and reduce your credit card debt by 30-40 or even 50% than watch you getting deeper in debt and declare yourself bankrupt.

Debt settlement can help you get rid of a huge portion of your debt, but if your credit card debt is less than 10K don’t take more credit just so you can qualify for debt reduction programs. Wiping your debt off is a difficult task and if you haven’t reached that $10,000 mark yet, it is better to go the other direction and focus on paying it off as soon as possible.

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