subject: Credit Card Debt Consolidation Relief - Combine Credit Card Debt For One Easy Payment [print this page] Credit Card Debt Consolidation Relief - Combine Credit Card Debt For One Easy Payment
Credit card debt consolidation relief ins one of the methods that can be used to eliminate the debt that you have. Well, there is a little bit of clarification that is required here. Debt consolidation is by itself a different relief method where debt is not eliminated. But in case the debt needs to be eliminated for multiple credit cards,the debt needs to be combined together to one place and this is what is also known as credit card debt consolidation. Combining the plastic money debts in one place for one easy payment is essentially the method of debt settlement.
This method requires a consumer to have an overall plastic money debt of $10k. The consumer will then have to combine the debts of all the credit cards to one place to ensure that the debt is consolidated. This consolidation can be done in two ways. First, the consumer can use the method of balance transfer and bring all the debts to one existing credit card or second the consumer can use a consolidation loan to repay all the credit cards. In the second method, the consolidation loan then becomes the principal and only loan which is consolidated. After this, the consumer needs to hire a professional firm for debt settlement. The firm will send a negotiator to the creditor who will then ask the creditor to eliminate the debt that the consumer has by at least 50% and consider the debt to be completely paid off. If this happens, the consumer will repay the remaining amount of the money in bulk. To make the creditor agree to this deal, the negotiator uses the threat of bankruptcy and says that the consumer will file for bankruptcy if the creditor disagrees.
The creditor agrees to the deal and then the consumer repays the remaining amount of the money in one easy payment. This is how the process works.
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.
