Depending on how much debt you owe, your monthly payments might be too large. You may struggle with paying the minimum amount due on your credit card bills, especially if that amount has gone up due to a raise in interest rates or changes in the law. If this is the case, there are several places you might look for help. Bankruptcy, debt settlement, and credit counseling are all possible, though certainly not equal, options.

If you struggle with making your credit card payments, you might be considering bankruptcy. Many people, however, go to this option more quickly than they ought. Bankruptcy will hurt your credit and prevent you from qualifying for buying a home or a car for the next several years. If you are in a case of extreme debt and have not been successful with other methods, it might be right for you.

Another option that you might be considering if you are unable to pay your credit card bills fully is debt settlement. Debt settlement can hurtful to your credit history. If you decide to work with a debt settlement company, you will be charged large fees for their services. They often require their payment up front as well. Any forgiven debt that they are able to get for you is also subject to taxes which will greatly cut into the savings you might have had. Debt settlement is not the bargain that it seems and is rarely worth it.

A third and more versatile option that is available to help you with credit card payments is working with a credit counselor. By talking to an accredited credit counselor in person or on the phone, you will be able to get a better assessment of your current situation. The counselor can walk through the decision you have and let you know the pros and cons of each option. They can answer the questions you have so that you can make an informed financial decision.

Most counselors will not advise bankruptcy or debt settlement. Instead, they will probably show you a more beneficial option: the debt management plan. A debt management plan allows you the opportunity to pay off your debt in a reasonable amount of time and often to lower your monthly payment to a more reasonable level. This can happen because the debt management company works with your creditors to get you better interest rates and lower your fees. The debt management plan will also allow you to pay one convenient monthly payment to cover each of your credit card bills.

The best step you can take to getting help with your credit card payments is to talk to a credit counselor. They deal with situations similar to yours on a regular basis and know exactly what you are going through. They can advise you on what steps you might be able to take to lower your interest rate which is the contributing factor to high minimum payments, as well as deal with the underlying problem of the debt itself.