Types of Relief for Credit Card Debt

Types of Relief for Credit Card Debt

Types of Relief for Credit Card Debt

The recent fall in global economy has buried many Americans knee deep in high credit card debt. With their savings quickly depleting, it is natural for them to fall behind on their monthly payments. However desperate times call for desperate measures and given the country's poor outlook, numerous services have been made available for the consumer to help them get back on their feet.

Debt Settlement

For individuals serious about clearing their debt and improving their credit rating, the first step is debt consolidation which involves a settlement amount agreed upon by both, the consumer and the creditor or the debt collecting agency. While this feature has already been in service for years, the state of the current economy has made this process less tedious and more likely to yield favorable results for the consumer.

Credit Card Debt Relief Options

Credit card companies are much more lenient in agreeing for a settlement amount nowadays mainly due to poor economy. Through proper negotiations, it is now possible to reach a settlement amount that is 35%-50% of the original loan. Some consumers have reported that their credit card company called them after looking at their account and credit history, offering easy settlement options.

These are tough times for the creditors just as much as they are for the consumers. Where individuals are struggling to make payments, creditors are struggling to receive payments. In light of this, both sides are more likely to reach a compromise. Creditors have the right to look at your credit history and if they see that you are unable to make payments on your accounts, they will surely yield to you.

Bankruptcy as the Last Resort for Credit Card Debt Relief

A last resort for the consumer to find credit card relief is simply to file for bankruptcy. This is one word that no creditor wants to hear. An approved bankruptcy is likely to rid the consumer of all debt, meaning that the creditor gets nothing. More often than not, this alone changes a creditor's mind.

However, careful consideration must be given when pondering this option because of its implications and consequences. This option is for those individuals who really don't have any savings to pay off their debt with and is generally used as a last option. While bankruptcy will absolve the consumer of most (if not all) of his/her debt, it must be kept in mind that bankruptcy remains on their credit history for a maximum of 10 years. During that time they will be unable to get a loan or mortgage and if they even apply for one, they have to lawfully mention the bankruptcy on their application. It should also be noted that child support and any applicable taxes will still be the responsibility of the consumer regardless of bankruptcy.

Professional Help for Credit Card Relief

At the end, it is always best to consult with a certified bankruptcy lawyer or debt consolidation specialist. They will help you to thoroughly explore all options for credit card debt relief and management. Another good idea would be to look up a non-profit organization to seek credit counseling and advice. Consumers should to be 100% sure that they are taking the right step in the right direction.

POST COMMENT

Bad Credit Loans Instant Decision - Get Money despite Your Poor Credit Score Bad credit rating loans-Do not fear of holding tainted credit status Eliminate Credit Card Debt Without Paying - Get Out of Debt Quickly Payday Loans No Credit Check - Get your Money Today! How Send In Statements Takes Advantage of the Credit Card Processing Industry Payday Loans No Credit Check - Easy Finance To Improve Your Credit Record! Bad Credit Payday Loans - No Credit Verification but Loans Then & There Loans For People On Benefits With Bad Credit-Best Fiscal Aid For Disabled US Loan Aid Really Eliminates Credit Card Debt Effectively Bad credit cosmetic surgery loans: Turning your dream in to a reality Loans with No Credit Check – Loan That Can Be Derived Even Having Bad Credit Loans With Bad Credit-Borrow Money To Bulid Your Credibility SECURED LOAN POOR CREDIT- easy credit to tackle adversities!