subject: Credit Card Debt Program - How to Drastically Reduce Payments and Eliminate Credit Card Debt [print this page] Credit Card Debt Program - How to Drastically Reduce Payments and Eliminate Credit Card Debt
There are many debt relief options available in the market which helps people come out of their debts. Some of the most common methods include bankruptcy, settlement, consolidation and management. A debtor needs to analyse the pros and cons of all the methods before committing to a particular debt relief method.
Most of the financial experts would advise a debtor to do a financial analysis before choosing a debt relief method. To do a financial analysis you need to get a copy of your credit report from the major credit bureaus Experian, Equifax and Trans Union. With this credit report in hand you can make a list of all the debts that you have in the order of decreasing interest rates. Now you need to make a list of your monthly expenses which should include the smallest of expense like your gas bill and your grocery charges. Now you can subtract this amount from your monthly income.
If you do not have any money left after meeting your monthly expenses then you should opt for bankruptcy. If you can spare some money for your debts, then opting for debt settlement might be wiser.
Debt settlement is an effective and legal way to reduce the amount. The creditor and debtor can agree on a reduced amount which can be accepted as full payment. The debtor will have to offer a certain percentage of the total debt as down payment in order to get the settled. These negotiations can be carried out by the debtor himself or with the assistance of a debt settlement company. People generally prefer to hire a debt settlement company if the amount is high.
A successful negotiation can get a debtor reduction in debt amount by as much as 40 % to 60 % of the total amount.
Their are several debt relief options available in this market so it would be wise to speak with a debt relief specialist to determine which option makes the most financial sense for you. Whether it is credit counseling, debt settlement, debt consolidation, or bankruptcy, a debt relief specialist will be able to steer you in the right direction.
