Credit Card Debt Relief - New Laws Help Consumers Pay Off Credit Cards
Credit Card Debt Relief - New Laws Help Consumers Pay Off Credit Cards
Credit card loans are always a major concern for any debtor who falls into a financial crisis. All kind of debts are a pain but a credit card loan stands out because of its extremely high interest rates. If one takes an unsecured loan from the bank the interest charged is much lower than that charged by the credit cards. These interest rates are neither justified nor proper. Hence, a number of people are trying to get out of this debt.
There are a number of debt relief options which can help the customer with his debs. Earlier bankruptcy was an option that most would opt for. With the changes made in the bankruptcy laws this is no longer the case. Now, it is no longer easy for an end customer to qualify for bankruptcy under chapter 7. Most who do not qualify under chapter 7 are sent under chapter 13. Bankruptcy under chapter 13 requires a customer to pay off his unsecured debts to a certain extent.
The amount of repayment can vary from 1% to 100% of the total outstanding amount. Hence this is no longer a favorable option for debtors who are looking for relief from debt. Other option that has gained popularity instead is debt settlement. This is a method in which the debtor can get a reduction in the total amount of debt that needs to be repaid. In exchange of this debt reduction the debtor pays the credit card company a certain amount as lump sum payment.
This process is simple; hence a debtor can attempt to negotiate the settlement amount himself. However, if the debt amount is high it is preferable to take assistance from the debt settlement companies available.
Their are several debt relief options available in this market so it would be wise to speak with a debt relief specialist to determine which option makes the most financial sense for you. Whether it is credit counseling, debt settlement, debt consolidation, or bankruptcy, a debt relief specialist will be able to steer you in the right direction.