subject: Eliminate Credit Card Debt Without Filing Bankruptcy - Debt Settlement Tips [print this page] Bankruptcy presents a very grave situation for a person and is usually the last resort for people unable to pay off their debts. When a person files for bankruptcy, he loses precious credit points which a lot of years to collect again. Therefore it is preferable to clear off your debts through other legal methods or following your own devised self help. However debt settlement and re consolidation is seen as the best possible option in such cases
"Debt relief settlement" is process in which a person hires professional help to reassess his finances and negotiate with his creditors to reduce his debt amount. The debt settlement companies draw a budget for your spending aimed at saving as much as possible. These savings can then be used to pay some part of your debts. After that these companies enter into negotiations with the creditors and try to get you discounts amounting to almost 20% to 50% of the total amount.
This then amounts to very easily payable small monthly installments. Debt settlement works well for the creditors too because they are at least getting some part of their money back. This helps the debtor get back on his feet and when he finishes paying off the whole debt, his credit points are also left intact.
However one should be very careful while choosing the correct debt settlement company. Such an authentic company never tries to hurry things and lets you choose the best possible program for yourself. People are even offered free workshops on living debt free by some companies. You must choose the best possible option and try to stick to it in order to avoid going bankrupt. Such professional help not only keeps you out of legal hassles of bankruptcy but also from paying more hefty fees to legal attorneys.
