Credit Card Debt Bankruptcy - Legitimate Debt Relief Options To Avoid Bankruptcy

Credit Card Debt Bankruptcy - Legitimate Debt Relief Options To Avoid Bankruptcy

Credit card debt bankruptcy is one of the major reasons why the economy of America is unable to get out of the effects of recession. As more and more people are opting for bankruptcy, the creditors are taking a hit. They are losing their financial balance and they are becoming financially unstable. This means that when the creditors are becoming, the supply side of the economy is becoming weak and the economy as a whole is becoming week! This is a serious problem.

To stop this problem, the federal government has come up with new bankruptcy laws which are targeted towards reducing the credit card debt bankruptcy and promoting the alternatives to bankruptcy which can help the consumers to get out of debt and still ensure that the creditors don't take the hit and the economy grows strong!

There are several legit debt relief options which can help the consumers to avoid bankruptcy and yet they can get out of their debts with ease. The most popular of all the available alternatives is the method of debt settlement. The other methods include debt management and debt consolidation. All three methods are briefly described below:

Debt Settlement: In this method the consumers hire professional debt settlement firms which negotiate with the creditors to eliminate a certain portion of the debt that the consumer has and also threatens the creditor that the consumers will have to file for bankruptcy in case the creditors do not agree. The creditors do not want the consumers to file for bankruptcy because if they do, the creditors will lose all their monies and that is why they agree to the deal offered by the negotiators. Generally 50% of the debt is eliminated by this method.

Debt Management: In this method the consumers repay the debt in full. The only thing that they do is that they arrange their debts in order of highest interest rates to the lowest and then start paying with the one which has the highest rate of interest. The consumer need to create a budget and eliminate unnecessary expenses and then use that additional saved money to repay debts!

Debt Consolidation: In this method the consumers hire consolidation firms. The consolidators negotiate with the creditors and ask them to remove some of the charges like service fee, late-fee, etc. and then ask for a reduction in the rate of interest. Here also the consolidators threaten the creditors of bankruptcy. The creditors generally agree and remove some of the charges and then reduces the interest charges and re-amortizes the loan. The consumers then make one single payment to the consolidation firms and the consolidators then distribute the money to the creditors.

With all these methods, one can legally eliminate debt without actually going for bankruptcy.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

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