subject: Credit Card Debt Management - How To Negotiate A Lower Interest Rate And Settle Credit Debt For Less [print this page] Credit Card Debt Management - How To Negotiate A Lower Interest Rate And Settle Credit Debt For Less
Credit card debt management is easier said than done especially when you have multiple credit cards with different payments and interest rates. Here we will look at effective methods for credit card debt relief and how to negotiate a lower interest rate and ultimately settle credit debt for less.
It is estimated that the average American has 9 credit cards in their wallet. Living on credit is the American how however it can easily spiral out of control if your not careful. Many consumers are witnessing this first hand today. For nearly two decades, creditors would issue almost unlimited credit to anyone who wanted it. Putting people into debt and charging high interest rates is how credit card companies makes their money.
As a result of this relaxed lending standards, there are more consumers massively in credit card debt than ever before. For consumers making just the minimum payments on these cards, it can be a financial nightmare. With each payment you make, 90% is going towards the interest while only 10% is paying off the balance. A simple $500 purchase on a high interest card can end up costing you over $3,000 by just paying the minimum payment. Paying the minimum payment is not good credit card debt management.
If you are struggling with paying back debt the best option is to negotiate with your creditors. You can use a professional program or try it by yourself. Just a few weeks ago I would have urged consumers to attempt to negotiate a debt settlement deal directly with their creditors and not use a professional company however new federal laws that were recently passed made it much more advantageous to use a professional debt relief service. Now when you enter into a debt settlement program you won't have to pay a dime until your debts actually settle. They don't settle your debt for at least 60% of the balance, you don't pay a dime. Simple as that.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
