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Finding credit card debt relief in Illinois

Many consumers in Illinois are facing ongoing struggles when it comes to their debt. It has been estimated that one in 10 consumers is currently subject to some sort of collection effort. Finding credit card debt relief can be complicated, but there are options available to consumers.

Some consumers may still be able work out an agreement directly with their credit card company if they are have money left over after carefully budgeting expenses. If there isn't anything left, or if a consumer is in the negative, things can get more complicated. At this point, it may be time to look for some assistance.

There are a number of consumer credit counseling agencies that may be able to help a consumer get on track. Consumers should be wary of debt settlement companies that make seemingly unrealistic promises. If a deal sounds too good to be true, it will most likely end up doing more harm than good and costing more money in the long run.

Another option available is bankruptcy protection. Filing bankruptcy will stop all collection efforts, including phone calls, during the course of the bankruptcy. There are two main kinds of bankruptcy filed by individuals. The first is Chapter 13, which is debt reorganization. Under Chapter 13, a payment plan is proposed to the court, overseen by a trustee and typically takes anywhere from three to five years to complete.

The second type is a Chapter 7, which is a total liquidation. Under Chapter 7, most debts are discharged, which means that the consumer is no longer responsible for those debts. Some debts aren't generally dischargeable such as most taxes, student loans and child support. In the end, no matter what credit card debt relief option an Illinois consumer chooses, there is an opportunity to confront outstanding obligations in a responsible manner whole laying the groundwork for a return to financial health.

Source: The Street, "Who Should You Ask For Help? Credit Card Companies Or Credit Counselors?," Nov. 7, 2012

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