subject: Personal Credit Card Debt Alleviation Bailouts – How to Get Creditors to Rid You of 50% of Your Unsecured Debt [print this page] Accumulated debt can be a cause of great concern and stress. A little time spent on prudent thinking and sensible planning will enable you to decrease your monthly obligations and get rid of your debts at the earliest.
For a start, analyze and understand your debts and income position by creating a budget after considering the accumulated debts, the debts involving the highest interest rates and the ones that are attracting penalties. Your first priority should be to ensure that you have enough money to pay your necessary bills and expenditure. Then consider how much money you can set aside each month to repay the debts. This will help you to decide on which method of debt relief you should adopt to provide you an effective solution. Add an additional percentage to the amount of the monthly payments that need to be made and distribute this amount across the cards. When you make higher payments on the debt accumulated, the balance amount of the debt would automatically go down.
Credit counseling is a good option for individuals having liability of less than $10,000. A credit counselor will recommend options after analyzing your debts, your spending trend and your income. They would then negotiate with your creditors based on their analysis, using their expertise. It is important to choose a non-profit debt counselor affiliated with the National Foundation for Credit Counseling to ensure legitimacy and credibility during negotiation.
For a person who is deep in financial debt but does not qualify for a bankruptcy, debt settlement may be a good option to consider. Debt settlement is a process that can help to reduce debt balances by up to 80%, though the general percentage of waiver is 30-50%. Under debt settlement, the creditor and debtor come to a legal agreement to reduce the amount of the original debt. It has a negative effect on the credit rating status of the debtor but is still a better option than bankruptcy which could have long lasting repercussions.
Personal Credit Card Debt Alleviation Bailouts How to Get Creditors to Rid You of 50% of Your Unsecured Debt
