subject: Legal Debt Relief Methods - How To Legally Cut Your Credit Card Debt In Half [print this page] Legal Debt Relief Methods - How To Legally Cut Your Credit Card Debt In Half
Looking for legal ways to cut your credit card debt in half? Well, the most trusted relief method will be the method of debt settlement. You can trust this method for two important reasons. First, it will wipe out at least half of your debt and second, it will keep your credit score intact. The bare minimum requirement that you need to fulfill for this method is to have an over all credit card debt of $10k or more.
Hiring a professional debt settlement company will be in your best interest because that will ensure that at least half of the debt is eliminated. In case you decide to go for debt negotiation on your own, you will be able to eliminate only 30%. The professional negotiator from the company will ask to stop paying the lender to prove that you are in financial doldrums. As you go delinquent, the creditor will decide to sell the debt to a collection agency after 90-120 days and with this deal the creditor will get back only 20-30% of the debt recovered from you by the collection agency. The rest goes into the vault of the agency itself.
The negotiator will then contact the creditor and offer half of the debt to be repaid in bulk. The condition will be that the rest needs to be waived off. To ensure that the creditor agrees, the negotiator threatens of imminent bankruptcy by you in case the creditor disagrees. The creditor wants to get back at least some part of the money as it is far better than losing the whole and will agree.
Once the half of the debt is eliminated, the creditor will prepare a new agreement paper and you will have to sign the same and then repay the remaining half of the debt in bulk. This is how legally eliminate half of your debt.
With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.
