subject: Credit Card Debt - How Debt Settlement Companies Can Reduce Your Credit Card Balance [print this page] Credit Card Debt - How Debt Settlement Companies Can Reduce Your Credit Card Balance
Owning multiple credit cards might be a status symbol for many consumers. Swiping your credit card can be a great fun too. But, the trouble comes when you are repaying your debts. If you are not able to clear your debts on-time, it is advisable to contact debt settlement companies to get yourself relieved from debt. You might think of filing bankruptcy, as there will be no need to repay debt if you succeed in the court. But, the caveat here is that your credit score will be badly affected, which in turn ruins your life. Getting a new job or a loan will be very difficult. Also buying or renting a property will be very difficult as well.
Unsecured debts in the form of credit card balance can be cleared easily by approaching settlement companies.
In order to know fully about these policies, you can contact several debt settlement companies. The aim of these debt settlement companies is to get maximum reduction from the total debt amount. They serve free of charge to answer your questions. These settlement companies are very professional and possess good tactics to bargain with the creditor, so you can expect maximum reduction from your total debt.
They follow all the procedures involved in the debt settlement process which in turn reduce the burden of doing the paperwork from your side. The negotiation process starts by sending a letter to the creditor. Then both parties settle for a reduced amount which becomes the new debt amount. Reduction may be somewhere around 40-60% from overall debt amount. Upon successful settlement, you might have to pay 15% from the reduced settlement amount as a fee to debt settlement companies.
The reduced settlement amount can be either paid as a single payment or it can also be paid as monthly installments. It is beneficial for consumers if they opt to repay the final amount in a single payment in order to avoid paying interests.As a whole you will be free from debt if you choose the debt settlement process.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
