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Five steps you need to consider before announcing a bankruptcy

Credit cards are a fundamental requirement for some people. Discounts and easiness to repay are two factors that attract a lot of people to subscribe to credit card. Some people have more than one card, since all credit cards offer different facilities. Credit cards provide a lot of convenience, one of which is it is easier for someone to order tickets online.

When we talk about credit cards, we cannot be separated from the risks and problems. In many cases, the use of credit cards is the cause of bankruptcy. Of course, the bank does not provide credit card facilities by "free" but the facilities are a line of their business to make profits.

As a normal human being, of course, we always want to get out of debt. However, sometimes some people are in urgent circumstances so could not avoid credit card or other debt types. If you have been tangled in credit card debt then do not ever give up! You still have a chance to be debt free by doing some advices below:

1. Develop financial data
When it is in debt bondage, some people panicked and did not understand their financial position. Understanding of the financial position is an important point in overcoming indebtedness. You need to know a variety of data such as the number of installments, the payment period, the list of assets, interest rates, income and expenses. Collect all existing data and then look at your position.

2. Payment Scheme
If you already understand how good your financial position, then the next step is to arrange a debt repayment scheme based on all the data. Create a payment schedule that includes the number of installments, interest rates, installments, as well as the payment term. Do not worry if you have difficulty in establishing a payment scheme because you can consult a financial planner.

3. Renegotiation
In some cases, you are still involved in debt even though you have sold the majority of your assets. You can negotiate about the rest of your debt. To note,
the debt negotiation is not a way to avoid repayment, but is a way to facilitate both parties (creditor and debtor) in addressing the problem. If the negotiations go well, then you have an important stepping stone to repay your debt.

4. Close your credit cards
We recommend you to use credit cards wisely. Credit cards are very useful if used properly, but can be misleading you if overused. If you are easily tempted by credit cards then you are advised to close them all. Forget a variety of discounts, promotions or prizes. They can take you to more serious problems.

5. Debt Consolidation
Debt consolidation is one way that is recommended for anyone trapped in multiple debts with high interest rates. If you are one of them then you need to combine multiple debts with high interest rates into a single loan with a lower interest rate. You only need to contact a company providing debt consolidation services and tell them your problem.
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