Is It Unethical To Negotiate With My Creditors?

If you said "yes", fair enough

If you said "yes", fair enough. I can understand that it may appear that way. However, it isn't unethical to stop paying your debt if you cannot afford to pay it, is it? After all, people's finances change all the time. There's no guarantee what the future may bring.

Due to the financial crisis, many debt collectors are settling for lower amounts than usual. Prior to the recession, our average settlement amount was about 50%. Now, our average settlement has spiraled to about 37%. This means that our average settlement is only about 37 cents on the dollar.

By settling (negotiating) your debt with your creditors, you are simply paying back what you can afford. If you suddenly stopped paying your debt for no valid reason, that would be considered unethical.

Is This Unethical? You Be The Judge

A creditor extending $30,000 of credit to someone and encouraging her to make minimum payments so that the creditors can collect about $321,000 in principle, interest, fees and penalties after repayment is made in full!?

If you ever wondered just how long it takes to pay-off credit card debt, go to creditcard.com and click on credit card calculator ( left column). Next, click on the minimum payments icon. Then, input the requested information. The calculator will display the duration to pay-off your unsecured debt.

How Greedy Can They Get?

Is this ethical? Changing your due date without notifying you in order to charge a late fee?It happens all the time. If it's stated in your contract, they can do it.

Is this ethical? Creditors, for no apparent reason, raise your interest rates to 29.99%, even if you have good credit? Imagine that. You never miss a payment and suddenly you receive a notice that informs you that your interest rate has been increased. This is happening a lot lately since President Obama signed a bill that will prohibit creditors from raising rates to ridiculous amounts.

Is this ethical? Changing your billing cycle so that your payment becomes due on a Sunday, so they can assess a late fee because they know the banks won't wire the funds on that day!

It's unfortunate that the credit card companies are taking advantage of consumers.

Do you still feel that it's unethical to settle with your creditors? To discover the fastest method of eliminating your debt, please visit us at http://debtfreesolutions.mobi.

by: Joseph Hernandez

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