subject: Credit Card Debt Relief - How Bailout Money Can Reduce Personal Debt by 50% [print this page] Credit card debt can be a painful burden for most of us who have limited means. There are various scams claiming that the government is giving out funds to help debtors get out of their debts. This is untrue. No government will pay you to get rid of the debt which you have accrued with your reckless spending.
The government has given bailout money to large financial institutions to cover their losses and keep them in working condition. This however, has translated to relief for the common man in the form of debt settlement. With the bailout money as their cushion, creditors are now in a position to negotiate with those customers who are no longer in the position to pay off their debts. For such customers, creditors agree on a settlement amount which will be less than the total debt amount.
Creditors are mainly interested in those candidates who have huge amount in unsecured debt. Typically ten thousand dollars or more in unsecured debt will ensure a settlement agreement provided the debtor fulfills other conditions of his creditors. Most creditors are not interested in settling smaller amount of debts as they believe that a debtor will struggle to make payments on that account and will not risk a bad credit score for a small balance of money.
A debtor should stop making payments towards his account if he wants to get his debt settled. A creditor will not consider the option for those customers who are making regular payments on their account. After 3 to 4 months of non payment, the creditors will be ready to negotiate on interest rate. If the account is on the verge of being sold to a collection company or if they think that the debtor is on the verge of filing for bankruptcy, they will even offer to settle the debt.
Credit Card Debt Relief - How Bailout Money Can Reduce Personal Debt by 50%
