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How to settle credit card debt in Massachusetts

In Massachusetts, individuals who struggle with credit card debt may not know all the options available to them. One can feel alone in the wake of tremendous pressure from creditors and collection agencies. If someone is going through a difficult financial period, paying off credit card debt may be impossible. High interest rates can cause even the most stringent individual to be unable to make the minimum payments necessary to stay afloat on debt.

Fortunately, there are options for those who want to settle credit card debt. According to information from the Federal Trade Commission, there are some debt settlement companies that can help people settle debt. While debt settlement companies have positives, they also have risks. They often require special payments into accounts for three years. Some people can struggle to make these payments. There is also no guarantee that a debt settlement company will be able to reach a settlement with a financial creditor.

Other options include talking directly with a credit card company or a credit counseling organization. For those who are in serious debt, bankruptcy is also a legitimate option. Filing for Chapter 7 or Chapter 13 bankruptcy can discharge credit card debt. There are various tests that may need to be met for bankruptcy, but it may be an option for those looking for a clear way for debt relief.

While there are many options for those who want to settle large amounts of credit card debt, some make more sense than others. It's important to be informed of the applicable federal and state laws. Settling credit card debt can involve challenges, but it can put someone on secure footing for the future.

Source: Federal Trade Commission, "Settling Credit Card Debt," Accessed on August 10, 2014

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