Out of control debt? secrets to eliminate personal credit card debt
Out of control debt? secrets to eliminate personal credit card debt
Are you troubled with out of control debt? If yes, you must try and find out the ways to eliminate the debt as soon as possible to ensure that you no longer face problems. Remember that longer you keep these unsecured debts unattended, the greater is the problem that you face. There are actually various ways to eliminate these unsecured debts. The most widely practiced was that of bankruptcy. However, with the new tough rules of bankruptcy had pushed the method to back foot and the method of debt settlement has replaced the same.
Settlement is not capable of eliminating the entire debt that the consumers have but yes, it ensures that at least 50-70% of the debt is eliminated and the consumers do not lose their credit score. This method is different from bankruptcy but it uses the threat of bankruptcy as a key to eliminate and settle debts for less. A minimum of $10 of debt is required for this method. The consumer can negotiate with the creditor or the lender on his or her own or he or she may decide to get professional help by hiring a professional settlement company which will negotiate with the lender on behalf of the consumer.
The negotiator instructs the debtor to go delinquent and then sends a letter to the creditor stating that the consumer or the debtor will not be able to repay the debt to the lender in full because of financial troubles which are a result of the recession. The letter will stop the lender from suing the debtor and then the creditor will wait for 90-120 days and then ask a collection agency to recover the debt from the debtor. The collection agency pay back only 20-30 cents per dollar to the creditor.
The negotiator then offers about 50% repayment in lump sum provided that the remaining amount is eliminated and that the lender will consider that repayment of 30-50% as full repayment of the debt. The negotiator here threatens the lender that the debtor will opt for bankruptcy in case the lender disagrees.
The lender will never want the debtor to go for bankruptcy and will agree to the deal offered by the negotiator. The consumer will then have to repay the amount agreed upon in one shot. This is how a debtor can get rid of the credit card debt.
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.