subject: Credit Card Debt Reduction – Why Credit Card Companies Will Negotiate Your Debt [print this page] Credit Card Debt Reduction Why Credit Card Companies Will Negotiate Your Debt
With individuals facing an increasing amount of debt more and more are looking for and exploring ways to reduce their burden. Today there is approximately 15 million unemployed in the Unites States and that has caused a severe strain on both individuals and credit card companies. Faced with reduced monthly income many find that they cannot even meet their minimum monthly payments much less pay the entire balance. Credit card issuers are facing increasing losses and are willing to negotiate and receive lesser amount can under the circumstances.
One of the solutions being sought by individuals is debt consolidation, which involves taking all ones bills and combining them under one loan. This works exceptionally well if the debtor is able to include his home as collateral. This has the effect of reducing the interest rates substantially and the life of the loan. It a great technique and the savings can be substantial.
Another technique for those that are in debt for more than $10,000 is to seek debt reduction. This is the process of were the amount and terms, such interest rate, is negotiated. The reduction of debt can range from 20% to 70% of the original amount, but varies in each situation. Will you credit score affected? Probably, but that can be negotiated also and there are good companies for credit repair afterwards. A good credit score is of no use if you can't make your payment and will be affected if you fall behind anyway.
The method you choose depends on the amount of debt and the circumstances you find yourself in. If you own a home and have income, then you may want to opt out for debt consolidation and save your credit score. If you income has been greatly reduced and you don't own any property, then debt settlement may be the best option for you. In either case it is important to get you financial situation under control and reduce the stress that it creates. There are solutions and there are those that are willing to help you achieve your goals.
