Settle Credit Card Debt For Less - How To Eliminate Debt And Also Manage Your Credit Score

Settle Credit Card Debt For Less - How To Eliminate Debt And Also Manage Your Credit Score

Want to settle credit card debt for less? The best thing that you can do is to use the method of debt settlement as a relief option. With this method, you can not only eliminate a major chunk of your dues but at the same time you can ensure that your credit score is managed and kept at original level. The reason why this method is gaining popularity over other methods and especially over bankruptcy filing is that this method avoid the financial problems associated with bankruptcy and also there are no legal hindrances in this method. On top of that, this method is the fastest method of debt relief available in the market.

So, what happens in the method? How do you eliminate debt? How do you manage your credit score with this method? The answers to these questions are mentioned in the following segment of this article.

The starting point for this method is the presence of a debt of at least $10k. Using the method of balance transfer available in the credit cards, you need to bring all your dues to one single card. Once that is accomplished, the next job is to get a waiver of a percentage of your total dues. You need to then hire a settlement firm which is legitimate. This can be a tough task as there are several shady companies operating in the market which will simply prey on your money without providing any real help. After hiring a professional company, you need to listen to every thing that the professional negotiator has to say and follow each advice word by word.

The major advice that comes your way is to go delinquent. Once you stop the payments, you will become defaulter and your name will be listed in the list of defaulters which is maintained by the credit bureaus. The longer you stop payments, the lower the credit score goes. With this, your credit score takes a hit. The negotiator then negotiates with the creditor and convinces the lender to wipe off at least 50% of the dues that you have. To ensure that this happens, the negotiator uses the threat of bankruptcy. Once the creditor agrees, a new agreement is signed and you will have to repay the remaining amount of the money to the creditor in one single payment.

When this happens, the creditor reports the credit bureaus that your debt is paid in full and that you don't owe any further money to the creditor. With this information, the credit bureaus take off your name from the list and your credit score is reverted back to the same level. This is how you eliminate your unsecured debt and manage your credit score.

With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.

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