subject: Credit Card Settlement Is The Fastest And Safest Way For Debt Relief [print this page] Credit card purchase is a trend of consumerism in todays world. The instrument of credit card is a tool of indulgence in the hands of consumers. It gives you the freedom to buy products and services of your choice for your near and dear ones. In most cases credit card users spend beyond their ability to repay and fall into a debt trap. The easiest way of coming out of this trap is to go for a card settlement. Through this arrangement it is possible to reduce your debt burden to a minimum. These settlements are always done between a card user and its issuer with or without the involvement of a mediator.
Credit cards are instruments of convenience that facilitate purchases and cash borrowings up to a predefined limit. This limit varies from one issuer to another and from user to user. As these credits are a form of unsecured borrowing the interest rate is incomparably high. Credit borrowings need not be paid in one installment but could be spread over several ones. However, for your next installment, interest is chargeable on amount still overdue. Unlike other form of loans, where interest is payable on reduced principal, here it is payable on total liability.
Users of credit cards develop a habit of unchecked buying to possess all good things available. Use of multiple credit cards in also common, as that increases your spending power. Unchecked usage of cards for buying or spending in reality adds to your debt burden which when aggravated could assume dangerous proportions. Cases of bankruptcy and insolvency are not uncommon because of credit card misuse.
The safest and fastest way is to come out of a recoverable debt settlement process. This is a mutual agreement between card consumer and card provider wherein a certain amount in agreed upon for reaching a final settlement. As this amount is required to be paid all-at-once, you stand to gain when going for a final payment. Normally a consumer is billed on total purchases, borrowings, plus interest accrued there upon. Another peculiar habit among card users is using it to its full available limit.
Ideally, purchases through cards should be restricted to such an amount which could be paid up fully in your next billing. Judicious use of credit cards demands that it be used sparingly and only when absolutely necessary. Theoretically, your credit card liability must never exceed one-fourth of your net monthly earning. This yardstick if followed strictly would prevent situations leading to final settlements.
After a credit card settlement is made, you are usually provided an acknowledgement or receipt from the issuer claiming thus. This receipt is an important document of delivering you from any form of obligation to card issuing authorities. In many cases, new credit cards are not issued to consumers whose accounts have gone in for final settlements. However, on paying up all dues, you might once again become eligible to procure new credit cards. It is a general observation that once a card user goes in for a settlement he never subscribes a fresh card.
