Personal Debt Relief - How Consumers Can Legally Settle Credit Card Debt For Less

Personal Debt Relief - How Consumers Can Legally Settle Credit Card Debt For Less

Demand for personal debt relief has increased because of the recession. Thousands and millions of Americans have lost their jobs or have found that their incomes were reduced because of the recession. These consumers failed to pay back their credit card bills and became defaulters. Being defaulters, these consumers wanted to get rid of their debts and filed for bankruptcy. The number of bankruptcy filings increased all of a sudden and the entire economy was affected. The economy was affected because of the fact that the creditors incurred behemoth amounts of loss due to bankruptcy. The consumers on the other hand suffered a lot. They lost credit score. They lost the eligibility to get new credit for 7-10 years. They were destined to become sub-prime consumers after that period of 7-10 years.

It is quite obvious that people wanted alternative and the option that came to rescue was that of debt settlement. Though there are no legal steps involved, no attorneys involved, the method is a completely legal one and is usually used to legally settle credit card debt for less. In settlement, the consumers need to be $10k or more in debt and the debts need to be consolidated. For consolidating the credit card debts, the consumers can actually use the option of balance transfer and bring all the debts in one place.

Hiring a professional debt settlement firm is the best thing that can be done. The negotiator from the firm informs the creditor that the consumer will not be able to repay the card bills any more and that the consumer wants to go for settlement. This is informed through a legal letter being sent to the creditor. The reason for such failure as mention in the letter is financial crisis. To prove such a crisis, the negotiator advises the consumer to go delinquent.

The creditor when gets the letter, it waits for 12-16 weeks and then commissions a collection agency for recovering the debt. The agency commissioned strikes a deal with the creditor in its favor and agrees to pay back a mere 20cents to 30cents per dollar to the creditor. The negotiator then calls the creditor or physically visits the creditor and offers a bulk repayment of 30%-50% of the debt, provided the rest is eliminated. The negotiator also says that if the offer is thrown off the desk, the consumer will reach the court for bankruptcy filing.

The creditor never wants this and hence agrees to the deal on the basis that it is more profitable compared to the deal with the collection agency and wipes of at least 50% of the total due that the consumer owes to the creditor. This is how the consumers can legally settle credit card debts for less.

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.

POST COMMENT

Credit Card Debt Negotiation - How To Legally Eliminate Credit Card Debt Settle Bad Credit Card Debt - How to Threaten Bankruptcy and Legally Settle Debt? A Fast Article To The Particular Legal Expertise A Lot Of UK Solicitors Offer Credit Debt Relief – Tips To Legally Get Out Of Paying Credit Card Debt How to Have Sex Longer - This Premature Ejaculation Technique is So Powerful, it Should Be Illegal! Are There Additional Measures Taken For Delivering Legal Documents? Debt Relief Options – Legal Tips To Avoid Credit Card Debt Credit Card Debt Relief For The Elderly – Tips To Legally Eliminate Credit Card Debt Credit Card Debt Secrets – How Credit Card Debt Can Be Legally Eliminated Federal Debt Relief Program – Tips To Capitalize And Legally Eliminate Unsecured Debt Protecting The Debtors Suing Legal Measures Essential Information You Must Know Before Proceeding With A Legal Action Legally Eliminate All Your Unsecured Debt With Debt Settlement Strategies That Work