subject: Credit Card Debt Settlement Programs - A Legal Way To Cut Your Credit Debt In Half [print this page] Credit Card Debt Settlement Programs - A Legal Way To Cut Your Credit Debt In Half
If you are looking for a legal way to cut your credit card debt in half then, credit card debt settlement program is the relief method that you are going to need. Just after recession and economic meltdown. It was found that in order to get rid of their debts the consumers abruptly started filing for bankruptcy. The method of bankruptcy turned out to be a nuisance during recession as the creditors started suffering due to massive loss that they absorbed resulting in a disequilibrium situation for the whole economy. It is then that the federal government came to rescue and imposed new bankruptcy laws which stopped the pace of bankruptcy. The consumers then shifted to debt settlement as an option for debt relief which helped the consumers in two ways. First, this option reduced the debt burden by at least 50% of the total due and second, this method ensured that the credit score of the consumers did not take a hit.
This method requires a consumer to have a massive debt of $10k minimum. Hiring a professional settlement firm will help the consumer to get the best deal possible. On advice of the professional negotiator, the consumer needs to go delinquent. Once this happens, a letter is mailed to the creditor which notifies the inability of the consumer, because of financial problems, to repay the debt in full. After a wait of 3-4 months after the lender receives the letter, the creditor summons a collection agency for debt recovery. With this, the creditor can get back only 20% to 30% of the total recovered money while the rest is retained by the agency.
The negotiator then contacts the creditor and offers a bulk repayment of 30-50% of the debt and threatens the creditor that in case the creditor does not agree to the deal and wipes of at least 50% of the debt, the last option for the consumer will be bankruptcy. The creditor agrees because bankruptcy is something that the creditor never wants. This is how to legally cut the credit card debts into half.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.
