subject: Legally Eliminate Credit Card Debt - Avoid Bankruptcy With Debt Settlement [print this page] Legally Eliminate Credit Card Debt - Avoid Bankruptcy With Debt Settlement
Bankruptcy is a critical stage in which consumer totally fails to pay back his outstanding amounts of any kind of debts and finally contacts the authorities to file for bankruptcy. This is the easiest way to get rid of all the massive debts at once, without paying a single penny but the circumstances after filing for bankruptcy are not favorable for the consumer. The word bankrupt reflects on the credit report of the consumer for more than seven years which means you may not be able to get any new loans from any bank for seven years.
The bankruptcy must be avoided in any circumstances and those people who think that they can survive in this time of recession without any financial support then they are wrong. These days people want financial support every day for businesses or for any kind of emergencies. So once the credit report is marked as a bankrupt, then it is not possible for a consumer to even apply for a new loan.
This is advisable to legally eliminate credit card debts instead of filing for bankruptcy. There are many options available in the market to prevent the bankruptcy and are helpful to eliminate the massive credit card debt. One of the best available option is debt settlement programs which were introduced few years back to prevent the increasing ratio of bankruptcy. Many people have already adopted the best way and have thus, eliminated all their loans. Debt settlement programs are legal and best way to get out of debt.
The function of debt settlement programs is to get a reduction over the outstanding amount in case of lump sum or in easy installments. When someone fails to pay back the massive debts, after 120 days the financial institution finally asks a consumer to repay otherwise they will take a legal action. At that time, consumer can ask for debt settlement and as per policies of financial institution regarding recoveries, mostly they accept and call for negotiations. The process of effective negotiation is done with the help of debt settlement companies. It is better to hire the services of debt Settlement Company, if you want maximum reduction over the massive debts.
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.
