Consumer Credit Card Debt Help - Ways to Reduce What You Pay Back and Avoid Bankruptcy

Consumer Credit Card Debt Help - Ways to Reduce What You Pay Back and Avoid Bankruptcy

Generally when people go heavily under debt, they start looking towards filing for bankruptcy. However bankruptcy brings with itself, its own share of problems. The only way is to pay back the debt. Now the question arises how to pay back such a huge debt. This is when people start looking at options like debt negotiation and resettlement, because these methods can easily reduce the amount of debt you have to pay back.

There are 2 ways of going for debt settlement. There are debt settlement companies from where you can hire professional help for yourself. These companies understand your financial condition, the causes of your debt, the amount and then they chalk out a plan to bring you out of such situation. Once they have setup a budget for you, they then enter into negotiations with your creditors and try to bring your debt amount down by 20% to 50%. Rest of the money is arranged in easily payable monthly installments. Such companies charge very little from you and no other perks. They also offer free workshops on finance management in order to keep you out of debt. There are another type of professionals which also help to reduce your debt.

They are called credit councilors. They function in almost the same way as debt settlement councilors except the fact that they work officially for the lenders and get their income from them. Since the creditors also do not want to lose their money therefore they too hire such professional help. The credit councilors however do not reduce your actual debt amount. They negotiate with the creditors in order to lower the high interest rate which makes it easier to pay back the money in low installments.

Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.

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