Help with personal finance - how to eliminate credit card bills through a debt settlement

Help with personal finance - how to eliminate credit card bills through a debt settlement

Do you need help with personal finance? If so, ensure that you are using a method other than bankruptcy. This is because of the fact that once you use bankruptcy, you will lose your credit score and you will fail to get further credit from creditors for at least 7-10 years. This happens because the report of bankruptcy filing shows up on the credit history for 7-10 years. The best thing that you can do is to opt for debt settlement. With this method, it is true that you will not be able to eliminate the entire debt that you have but you will sure eliminate at least 50-70% of the debt that you have and also you will not lose your credit score.

To opt for debt settlement, you will be needing a debt of at least $10k and the debt needs to be consolidated in one place. It is not mandatory but suggested that you opt for professional help from a legit debt settlement company. This is because of the fact that if you negotiate with your creditors on your own, you will not get an elimination greater than 30%. This happens because you lack expertise and knowledge of the banking system.

When you hire a professional company, the negotiator from the company will ask you to stop paying the creditor. This is because, the negotiator needs to prove to the creditor that you are in a financial problem and you will no longer be able to repay the debt in full. This is also notified to the creditor by a formal letter. The letter is sent to the creditor along with the proof of your financial problems.

Once the creditor receives the letter and stops getting any payments from your end, the creditor will wait for 3-4 months and then contact a collection agency for recovery with the hope that the threatening calls from the collection agency will force you to repay the debt in full. When the creditor contacts the agency, the agency agrees to give only 20-30% of what ever money is recovered from you to the creditor. The negotiator keeps a track of this and the contacts the creditor and offers 30-50 cents per dollar and at the same time threatens the creditor that you will be left with the only option of bankruptcy in case the deal is not accepted.

The creditor agrees because it never wants you to file for bankruptcy and also because of the fact that the new deal will mean 100% ROI for the collection agency and wipes of the debt that you have by at least 50%. The remaining amount of the debt is to be paid to the creditor in bulk within the specified time. This is how you eliminate credit card bills through a debt settlement.

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.

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