subject: Credit Card Debt Solutions - How to Threaten Bankruptcy and Reduce Credit Card Debt by 50% [print this page] Credit Card Debt Solutions - How to Threaten Bankruptcy and Reduce Credit Card Debt by 50%
Do you what is scaring the hell out of money granting companies? They are scared because a lot of their clients are filing applications for bankruptcy. This means that they lose all the money which the customer has spent. What is the reason behind this increase in bankruptcy rate? Money granting firms are adopting a very rude attitude with their debtors. What happens when you don't pay your bills time? Collection agents annoy you by visiting your house at odd hours. Hence, you get frustrated and apply for bankruptcy. Instead of spoiling your future, you should look for proper credit card debt solutions. These credit card debt solutions make your dues more manageable.
How can you use bankruptcy as an effective threat?
As mentioned before, a money granting firm cannot claim anything from a bankrupt debtor. At the moment, money granting companies cannot afford to lose finances. Hence, they are trying their bets to prevent bankruptcy. They are not forcing their customers to pay more. Instead, they are encouraging the use of credit card debt solutions and accepting what the customer can pay. These firms are even accepting forty percent of the actual payments.
For instance, consider that the debtor has spent ten thousand dollars and he applies for settlement. If a financial firm awards a reduction of forty percent, four thousand dollars are washed out. This means that the debtor has to pay a sum of six thousand dollars instead of ten thousand. In other words, the money granting firm faces a loss of four thousand dollars which shows that credit card debt solutions are not profitable for loan giving companies.
Using the bankruptcy threat and paying half
If a loan taker runs out of money, the loan giving firm loses everything which he has spent. If you are loan taker and you are disturbed due to your liabilities, you can use the bankruptcy threat. Money granting firms have no other option but to accept settlement proposals. What happens if they don't?
The loan taker declares that he has nothing left
The bank loses everything which the loan taker has actually spent
The bank faces further financial damage which is lethal in this recession hit period
To prevent this situation, they accept credit card debt solutions
You should think intelligently before acting in order to get your dues settled. Once the conditions improve, this kind of flexibility will not be available.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
