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Is debt settlement your best debt relief option?

For many in Arkansas, living with a heavy load of credit card debt is akin to being a lobster in a pot. The situation seems fine for a while, but the temperature is slowly rising, even as the lobster is unaware that he is being cooked. Before long, the water is at a boil, and there is no turning back for the unfortunate crustacean. The following tips are offered in the hopes of giving borrowers the tools needed to evaluate their credit debt, and to know when it is time to crawl out of the pot and seek debt settlement or bankruptcy.

One clue that credit card debt is out of control is when an individual has maxed out one or more accounts. Once a consumer has passed around 70 percent of his or her available credit limit, it is time to take a closer look at the overall debt scenario. Moving past this point can lead to overcharge fees, credit score damage and the lack of available credit if an emergency should arise.

Another sign of serious debt trouble is when credit cards become the go-to payment source for most purchases. This is most obvious when an individual begins to use plastic to pay for small purchases that would normally be covered with cash. Once the card is being pulled out for multiple transactions within a given week, there may be trouble ahead.

For those in Arkansas who recognize these examples within their own lives, it may be time to think about debt relief measures. Debt consolidation may be effective in some cases, and debt settlement can help in others. For some, however, the only way to effectively address credit card debt is to seek personal bankruptcy, which can lead to the discharge of those debts.

Source: fool.com, "7 Signs Your Credit Card Debt Is Out of Control -- and 5 Ways to Fix It", Matthew Frankel, Oct. 31, 2015

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