subject: How To Aggressively Eliminate Plastic Money Debt - Debt Settlement Tips [print this page] Credit card debt can grow for many reasonsCredit card debt can grow for many reasons. Maybe a family is growing and the credit cards were used to buy necessary items or, there was a new home purchase and debt was created with home items that were needed or landscaping that needed to be completed. There is also the times when the credit cards are the only way to pay for food for the family or pay another bill and hope that you can pay the bill next month.
Many people begin to wonder how to aggressively eliminate credit card debt and get out from under the mounting bills that are showing up each month. Do not lose hope, there are way to settle the debt that is owed. Here are some tips to aggressively eliminate credit card debt with the creditors.
Check the credit report, make sure that the creditor has not already charged off the debt. Some creditors will charge off the debt when no payments have been made. If it has been charged off already, there is no payment that has to be made on it. The creditor has already released you from it through the charge off. The debt is legally dead and they can not come after you for the amount owed any longer.
Look up the statue of limitations in your state. Each state is different, however there is a limit to how long a company has to come after a person for a past debt. This includes collection agencies as well. Once the statue expires, the debt is legally dead and they can never come after you again for the debt. So check to see if the statue has run out on any of the debt you owe, if it has, then there are no payments that need to be made there either. Inform the collection agency, bank or credit card that it is dead and they can no longer call you or send letter.
Items only stay on a credit report for 7 years, if there is debt on there that is older than 7 years, contact the credit bureaus to have the items removed immediately. They can not stay on longer than 7 years. However, remember that the statue may be longer in your state for a debt being collected.
Make sure that the remaining debt amounts are correct. Any inaccuracies need to be reported the credit bureaus and then it becomes the responsibility of the creditor to prove that it is yours and that the amount is correct also. They have to show proof of the debt to the credit bureau and to you. If they can not show proof, then the debt must be removed and the collections stopped. This is true of collections agencies as well. They have to show proof that it is yours, if there is no proof or they do not produce it in 30 days, then the debt is eliminated.
After this, using a debt settlement agency can help aggressively eliminate credit card debt through negotiations. They can reduce the remaining debt by 50% or more.
How Settlement Works?
Simple! The consumer needs to hire a settlement firm. The negotiator from the firm asks the borrower to go delinquent and once this takes place, the creditor contacts a collection company and hands over the debt for collection of dues. The creditor agrees for a very bad deal of 20-30% of the total money collected. The rest will be kept by the collection agency.
At this point the negotiator contacts the creditor and offers 30-50% repayment in lump sum and also threatens that the consumer will file for bankruptcy in case the creditor disagrees. This is the actual aggressive step. The creditors don't want bankruptcy because the lose their whole money. The creditor will therefore, agree to the offer made by the negotiator and erase the debt of the consumer by at least 50%. This is how the debt is eliminated.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
How To Aggressively Eliminate Plastic Money Debt - Debt Settlement Tips
