subject: Debt Settlement 101 - How Your Credit Card Debt Can Be Legally Forgiven [print this page] Debt Settlement 101 - How Your Credit Card Debt Can Be Legally Forgiven
While no debt is easy to manage and deal with, credit card debt is often one of the trickiest to pay off, because of its special qualities, such as large interest and the ability to spend more while you're already in debt, and as the average consumer will probably have to deal with this issue at least once in their lifetime it's good to be informed about the ways in which you can pay off, or even better, have your debt erased.
Bankruptcy is not the answer here, as it will only cause more trouble in your future and it will not actually get the creditor his money back either. Another solution is needed, one that will eliminate your debt, but still keep you in the economic game. This is where debt settlement comes in and, while it may not completely erase your debt, it does the next best thing - cuts of a part of it to help you, the debtor, pay your dues and get a second chance at prosperity.
With the aid of a good debt negotiation company, you will start the negotiation process that aims at reducing your debt as much as possible. Keep in mind that you can't expect miracles, usually clients get a fifty percent reduction and in rare cases you can see sixty or seventy percent, but it's best to be realistic about your options. A cut like this includes annual fees and late payment penalties, but it also means that a large part of the interest will not have to be paid.
The one thing you need with debt settlement is a good payment plan that will keep you on track with your goal and help you achieve a debt-free life in less than four years, with the fees for the negotiator included in those payments.
In the end debt elimination is a very legal process that can help you tremendously when it comes to getting rid of your large credit card debt. If used correctly, this solution can help both debtor and creditor, creating a situation where each of them gets what they want and with a much lighter impact on our global economy.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
