subject: Unsecured Credit Card Debt - How To Clean Up Your Credit Card Problems [print this page] Credit card debts are unsecured debts as they have no collateral attached to them. This is the reason why they have very high rates of interest. Once an individual falls into the card debt trap it is very difficult to get out. However, badly managed credit cards are one of the main reasons why people end up with low credit ratings. Poor credit ratings can be the worst thing to happen to an individual. Not only are their loans never approved, it becomes more difficult and expensive to buy utilities and even insurance. This can seriously impact your financial situation which is at best shaky given the current times of recession. This is the reason why it is necessary to have good credit. It is possible to repair damaged credit and the best and fastest way to do so is to get rid of your credit card problems.
The best option for becoming free of unmanageable card debts is the process of debt settlement. In this procedure, you can negotiate the loan amount with your card companies. Usually the card companies fear that if you file for bankruptcy they will lose all their money. This is the reason they are very receptive to requests for debt settlement. With proper negotiations it is possible to reduce your credit card debt by 40-50% of the original amount. This amount can then be paid off as a lump sum or in equated monthly installments. You can also request the credit card company to waive off the penalty charges. Even the interest payable on the settled amount can be negotiated and reduced. Opting for debt settlement will definitely impact your credit ratings in a negative way. However, with a little time, patience and proper financial planning it is possible to rebuild your damaged credit scores.
You can handle this procedure yourself or hire the professional help of a debt settlement company. In fact, these settlement companies also offer free budget planning advice. They also advise you on how to rebuild your credit scores once the debt settlement procedure has been started.
If you owe more than $10,000 in unsecured debt, you can be Debt Free in as little as 12-36 months. Consumers on average can expect to eliminate up to 60% of their unsecured debt with the help of a legitimate debt settlement company. Due to the recession an overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To get free debt help check out the link below:
