subject: Stop Paying Credit Card Debt - How To Gain Leverage Over Creditors And Settle Your Debt [print this page] Stop Paying Credit Card Debt - How To Gain Leverage Over Creditors And Settle Your Debt
Many companies and individuals have to face financial crisis. These financial crises may lead towards bankruptcy. There can be many reasons for suffering from these financial crises. But ill-management of resources is one of the main reasons for these crises. In case of credit card debts, debt settlement can help you a lot. Through debt negotiation, debts can be eliminated up to 50% or more. This can either be done by the debtor himself or by hiring the services of a settlement company.
In order to divert the attention of your card company, you have to stop making your debt payments. If you are making payments that may be in small amount, then these company will never bother to listen to you. When you stop making payments for a certain period of time, then the credit card company will try to contact you through phone or will send a warning letter to you. This period is normally greater than three months. After this time period, that credit card company may send its debt collectors. These collectors are well informed about the loan settlement policy of their credit card company. In the mean time, you may get threatening calls from your credit card company or someone related to that company. Indeed, mostly people don't want to get into such troubles and that is why they don't use these options. But actually, this is the only way to get a settlement. When collectors contact you, you should talk to them and tell them about your financial conditions. Try to convince them that you are not able to pay the debt anymore and you are suffering from extreme financial crisis.
You should negotiate with the company too. You can tell them that if the credit card company will not offer you a debt settlement plan suitable then you will have to file bankruptcy. These credit card companies are afraid of the bankruptcy cases. So, this statement can make a correct impression on their minds and they may get ready to offer you a settlement plan to get some amount back instead of getting nothing.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.
