subject: Credit Card Debt Tips - Legitimate Options To Reduce Credit Card Debt Quickly [print this page] Credit Card Debt Tips - Legitimate Options To Reduce Credit Card Debt Quickly
If you are looking for some tips to eliminate you credit card debts, you have landed on the right article. This article tries to give an overview of the various legit options which are available to reduce credit card debt quickly. The age old practice of filing for bankruptcy is no longer in use because of several reasons.
Bankruptcy cause huge financial troubles for both the consumers and the creditors.
It takes a very long time to eliminate debt of the consumers using this method. Sometimes it can take more than 7 years.
Bankruptcy has many legal hassles which the consumers generally want to avoid.
There are qualification criteria for bankruptcy and most of the people fail to fulfill that criteria.
There are however, several options which are capable of eliminating the debts of the consumers and they are fast and effective. Of the various methods which are available, the most popular being the method of debt settlement. The others are consolidation of debt and debt management.
Settlement takes the minimum time. A typical settlement method complete in 1-3 years. Here a consumer needs to hire a professional settlement firm which will then negotiate with the creditors to eliminate the debt of the consumer by at least 50% and up to 70%. It is true that the consumers do not get 100% relief like that in bankruptcy filing but still 50% elimination is not less. The best part is the consumers get back their credit score and credibility after settlement is complete and once this happens, the consumers are able to take fresh loan at market rates of interests. This is not possible in case of bankruptcy. In bankruptcy, the credit score and credibility is lost for 7-10 years.
In consolidation method, the consumer needs to hire a professional consolidation firm. The consolidator from the firm will negotiate with the creditors for removing some charges like late fee, service charge, over limit charges and others and will also ask for a reduction in the rate of interest. When the creditor agrees, the loan is re-amortized and the consumer then makes one single payment every month to the consolidator who then distributes the money among the creditors. This method takes up to 5 years to complete.
In the last method of debt management, the consumer makes a new budget and then start paying with the loan which has the highest interest rate. Creating a new budget means that the consumer needs to eliminate unnecessary expenses and use that saved money for debt repayment. This method also takes up to 5 years to complete.
Thus using these methods, a consumer can easily get rid of their debts quickly!
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.
