Getting in over your head with credit card debt is like riding a Merry-Go-Round – you just keep going around and around in circles but you never get anywhere. Every month it’s the same old story – which card should we use to pay make the minimum payments on all the other cards? Which bill can we put off for another week or so? If you could only pay off that credit card debt you’d have a lot more money at the end of the month – and a lot less stress.

We all know that the major negative effect of having all that credit card debt is stress but what about the effect when you pay it off? Most people don’t talk about that. But if you pay off your credit card debt the wrong way you could be hurting finances even more than the original debt did.

For example, filing for Chapter 7 Bankruptcy leaves a terrible stain on your credit rating for years to come, making it almost impossible for you to get any kind of credit at all. And Chapter 13 isn’t much better. The legal system determines how much money you have to pay your creditors and you’re bound by their decision – whether you can afford it or not. Miss one single payment and you’re in big trouble.

A debt consolidation loan is generally a good option. You relieve your debt and usually end up with a much lower monthly payment. It even makes your debt to income ration look better which improves your credit rating. However, not everyone has the collateral to qualify.

Your best bet is to consult a reputable credit card debt relief agency and let them take a look at your particular situation. They can advise you on the best course of action that will protect your credit rating as much as possible and still pay off your credit card debt – and with terms that you can comfortably live with.