subject: Erase Bad Credit Card Debt - Why Credit Card Debt Settlements Are Expected To Rise [print this page] Erase Bad Credit Card Debt - Why Credit Card Debt Settlements Are Expected To Rise
It is obvious that no debtor wants to be under the burden of liabilities and wants to get rid of this burden as soon as possible. For this purpose people usually file for bankruptcy and avoid going for other settlement programs. People are unaware of the fact that bankruptcy has many associated bad impacts which can make them suffer. Although apparently the borrower gets rid of the debts but as time passes, all the bad impacts start to reveal one by one. Firstly, the one who files for it becomes ineligible to get credit for the next ten years. Secondly, the credit score gets lowered due to which the person seeking for a job would have to suffer a lot. You also have a threat to lose your assets. Not only the borrower but the credit card companies also suffer if any of its client files for bankruptcy. The company gets nothing if the client becomes successful in filing a petition for bankruptcy.
In the past people were unable to avail any other relief programs like debt settlement because they were cheated by the illegal practices of the fake and fraudulent settlement companies. Therefore, people were compelled to opt for bankruptcy. Due this the USA government introduced new laws for debt settlement. Moreover, the rules for filing bankruptcy were made complicated so that no debtor could go for it when the settlement deal is present. The registration fee and formalities for bankruptcy were also made complex.
The attorneys were also given more responsibilities due to which they increased their service fees. All these complications encouraged the debtors to opt for the debt settlement program. Previously, the settlement companies used to ask advance upfront fee form the customers and used to leave them in the middle of their problems but now by the introduction of the new laws, these companies are legally bound not to ask for the service charges in advance. Moreover, they are only able to ask for the fees when they will be able to solve the cases of the borrowers along with providing them with a good amount of reduction in the liabilities.
Therefore, if your debt amount is more than $ 10,000 then you should choose this program to get rid of the loans and resume to happy and contented life.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.
