subject: Debt Settlement – Is It Good to Opt Other Reliefs Offered by Credit Card Issuer? [print this page] Author: Alex James Author: Alex James
Why should you avoid various offers put forth by your credit card issuer like reduction of interest rate or balance transfer and opt for a debt settlement instead? There is a fundamental difference between reduction of interest rate and other such measures and settlement of debt.
In case of the former, your debt does not actually come down. Rather, attempts are made to make it easier for you to repay your debt in full. On the other hand, debt settlement involves reduction of your debt. Your debts come down by as much as seventy percent. You may not qualify for this waiver. However, you certainly can be assured of reduction of at least thirty to forty percent. Even this reduction is substantial considering the fact that you are finding it difficult to make ends meet.
You may feel that the former options are preferable because the same have been offered by your credit card issuers. On the other hand, card issuers are not very enthusiastic about debt settlement. This is because the former option does not involve any real loss for lenders. They are still assured of full and final repayment. Rather, the loss is all yours. On the other hand, debt settlement involves significant reduction in the profit they are earn out of the deal. That is the only instance where a credit card issuer or lenders actually gives up a significant portion of income to assist the borrower.
The mere fact that your credit card issuer is not keen on offering settlement should encourage you to insist on that nothing but settlement will do. You will hear about a drastic reduction in your credit score and negative mark on your credit report for a long period of time.
You probably have a poor credit score now, don't you? And if things continue the way they are, you probably will end up with bankruptcy which will have an even more negative impact on your credit scoring your credit history. It is better to opt for the lesser evil and settle your debts rather than prolong the issue by using cosmetic remedies.
If you are over $10,000 in unsecured debt it would be wise to utilize a debt relief network instead of going directly to a debt settlement company. Using a debt relief network guarantees that the debt settlement company you choose has been certified and has established success in negotiating settlements. They are free to use and a good starting point to begin your debt relief process.About the Author:
James McGuire is an industry specialist and is associated with www.curadebt.com, a leading debt settlement company providing debt settlement, debt negotiation services to recover your debts and prevent persecution from creditors.
