subject: Credit Card Debt Relief Bailouts - A Way To Legally Avoid Paying Credit Debt In Full [print this page] Credit Card Debt Relief Bailouts - A Way To Legally Avoid Paying Credit Debt In Full
There is a legal way to avoid paying credit card debt in full. The method is none other than settlement which allows the consumers to run away from financial troubles by paying less than what they owe to the creditors. This method has a very basic requirement which every consumer needs to fulfill in order to be able to use this method. The consumers are required to have at least $10k of unsecured debts.
The next step for the consumers is to hire a professional settlement firm. Once a person hires a firm, the negotiator from the firm creates a repayment plan on the basis of the information provided by the consumer and sends the same to the creditor and asks the consumer to go delinquent. When the creditor stops receiving payments, it sells the debt to a collection agency for the bare minimum of 20 cents per dollar to 30 cents per dollar. When this deal is signed between the lender and the agency, the negotiator contacts the creditor and directly offers 30% repayment to 50% repayment and that too in lump sum.
The major weapon launched during this offer is the threat of bankruptcy where the negotiator states that the consumer will opt for that in case of the offer being declined. The creditor is left with no other option but to accept the same and wipe out at least fifty percent of the debt. When this is done and documented, the consumer needs to repay the remaining amount of the money to the creditor in lump sum. This is a legal way to avoid paying credit card debt in full.
Debt settlement can make financial sense for consumers and small businesses that are experiencing a financial hardship and have at least $10k in unsecured debt.
