subject: Credit Card Debt Consolidation - Is A Debt Consolidation Right For You? [print this page] Credit Card Debt Consolidation - Is A Debt Consolidation Right For You?
These days, we can find many ways to get rid of the huge pools of debts. All these programs are legitimate and have been introduced by the government itself to help the people in getting them back to their normal and happy debt free life once again. The two most acceptable and famous programs are debt consolidation and the debt settlement programs. Both these programs have been adopted by many people in order to get out of the depressed life under huge debts of credit cards.
Debt settlement is the program which is for those people who are under the debt of $10,000. They are required to negotiate with their lenders and tell them that they are not in a good financial condition to pay back the debts so; they want to settle their debts. Companies agree for this procedure because the amount that they will reduce from the amount to be paid has been already stimulated by the government in the economy. So they don't feel reluctant in doing so.
But in case your debt is less than $10,000 then debt consolidation would be the better option for you. It is the case where you have to pay the bill of more than one credit card. In this method, all your bills will be consolidated into one account. Afterwards, you will have to pay the bill of one credit card as compared to paying the bills of many cards. Moreover, you will also get reduction on the interest to be paid on the bill of the credit card. In this way you will be able to get out of your debts in time period of almost five years rather than the time frame of 20 years or more.
Here, we have discussed both the ways and now it totally depends on you that which one is acceptable for you. Moreover, it can also be seen that if you have a debt of $10,000 or more, then debt settlement would be preferable while if you have debts of more than one credit card then the latter one would be convenient for you.
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. Check out the following link to locate legitimate debt help in your state.
