Debt Negotiation - Achieving Long-Term Affordability in Your Credit Card Bills

Debt Negotiation - Achieving Long-Term Affordability in Your Credit Card Bills

When most people find themselves in debt they usually start to think of bankruptcy as being their only resort, but this is not necessarily the case, especially with the new laws brought about by the current economical situation. Even with credit card debt there are many other solutions to consider before settling with what might be the single most destructive one of all.

Recent developments have made it so that credit card companies are now more willing and sit down with their clients and work out a payment plan that is beneficial for both parties, mainly out of fear of going out of business. Methods such as debt consolidation or debt settlement are starting to be more widely-available and may very well prove to be a big help in keeping the economy going.

Debt settlement is especially helpful with credit card debt as it cuts your long term debt in half, and it also turns one unsecured debt into secured debt, for more relaxed payments. With this method, you negotiate with your creditor via a specialized agency, informing him of the fact that you are no longer able to pay your debt completely, but that you are able to pay at least some part of it.

If your creditor agrees, he may cut debt that would accumulate over time from interest, annual fees or penalties, and let you pay the remainder at a lower interest. The only thing you have to remember is that this process must be completed in a maximum of four years, otherwise you risk a lawsuit.

Essentially you can go from lingering for decades, struggling with monthly minimum payments, and seeing no real change in your debt because of the huge interest rate associated with most credit cards, to being done with your debt in a matter of four years or even less, depending on your personal situation.

Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.

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