subject: Burdened By Credit Card Debt - How To Significantly Lower Payments And Reduce Credit Card Debt [print this page] Burdened By Credit Card Debt - How To Significantly Lower Payments And Reduce Credit Card Debt
Credit card was genuinely introduced as a convenience for people. As years rolled by, credit card became a necessity helping people buy everything on credit. Recession has helped people to understand that one must not be extravagant while using cards. With more and more people losing jobs everyday, the burden of card debt is increasing at an alarming rate.
A debtor carries a burden of card debt along with a high rate of interest and penalty fees. This is the time where he gets desperate to file for bankruptcy. But there are better ways to cope with this problem. If card debt is substantial, settlement is an option to be considered. Settlement can be done only for unsecured debts which has no security. Card takes the form of unsecured debt and when debt amount crosses $10000, debt settlement is advised. One must be smart to significantly lower the payments and reduce debt. Settlement is done by a professional firm which helps in understanding your financial state of affairs and also provides necessary solutions.
Settlement is a method by which one can settle their dues for less with the creditors. It is a legal process by which more than 60 % of your debts can be eliminated. A reputed firm can negotiate and reduce the payments to a great extent. Recession has motivated the creditors to acknowledge settlement to recover some portion of the debt amount due. Settlement is considered effective since credit worthiness of an individual is retained. There are various professional firms which can be approached through a debt relief network.
Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.
