Using the Threat of Bankruptcy to Eliminate Debt - How to Eliminate Credit Card Debt

Most people enjoy the pleasures of plastic money while shopping

. The pain is realized when you receive the bill from the card issuing company. And if the economic slum hits at that time this pain becomes more acute. Credit card companies request their customers to make payments at time. In case you default then you start getting collection calls threatening with legal action. This intimidating and aggressive approach pushes the customer to think about drastic steps like filing for bankruptcy.

Now this is not such a bad thing anymore, just as long as you don't go ahead and put this plan into action. Just try sharing this thought with your credit card company. What we are really getting at here is that you can now use the threat of bankruptcy to get rid of your debts. The last thing your credit card company wants is bankruptcy as they stand to lose everything then. In the past the credit card companies have lost a lot of money to those who have filed for bankruptcy. The law is designed to protect the customer and if a person files for bankruptcy no attempts to retrieve the loaned amount can be made by the credit card companies.

You will have to make a list of all your assets and liabilities. You can use this document to convince your lenders that your threat is real. It is always advisable to be accompanied by professional debt settlement agencies during these negotiations. A good debt settlement agency can get you a waiver of up to fifty to sixty percent of the outstanding amount.

There is a huge difference between making a threat about filing for bankruptcy and actually going ahead with the plan. Same as your credit card company does not pull you to the court when you miss a payment.

For the millions of Americans who are at least $10 k in unsecured debt, it would be financially prudent to consider the debt settlement option. Creditors are very worried about collecting their debts and legitimate debt settlement companies know exactly what methods to use to get your creditors to agree to eliminate a certain percentage of your unsecured debt.

Using the Threat of Bankruptcy to Eliminate Debt - How to Eliminate Credit Card Debt

By: Brendon Calvert

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