Credit Card Debt Bankruptcy – Ways To Avoid Bankruptcy And Eliminate Credit Debt

credit card debt bankruptcy
by Ed Yourdon

Credit Card Debt Bankruptcy – Ways To Avoid Bankruptcy And Eliminate Credit Debt

Credit card debt bankruptcy can be a real nuisance for the financial health of the consumers. This is because of the fact that once the consumers file for bankruptcy, they will lose their FICO score and they will also become sub-prime consumers. The sub-prime status will stay for the rest of the life and the credit score will stay low for at least 7 years to 10 years. During is period of 7-10 years, the consumer will not get any further loan from any creditor. It is therefore, important for the consumers to avoid bankruptcy and to make sure that they stick to some other method of debt relief which can eliminate a certain percentage of their unsecured debts and at the same time makes sure that the FICO score is not affected.

 

The only method that can do this both is the method of debt settlement. This method of settlement is capable of eliminating at least 50% and up to 70% of the unsecured loans that the consumer has. The consumers are required to hire a professional debt settlement firm for negotiation with the creditors. This is because of the fact that a professional firm has better expertise and knowledge which they can use in advantage of the consumers and force the creditors to agree to the settlement deal which is more in favor of the consumer.

 

The consumers will have to go delinquent on advice of the negotiator from the settlement firm hired. The negotiator will then actually call the creditor and offer a bulk repayment of the debt and ask for elimination of the rest. The minimum amount of elimination asked for is 50%. The creditor will be forced to accept the deal because of the fact that the negotiator will actually threaten bankruptcy to the creditor.

This is who a consumer can avoid bankruptcy and eliminate credit debt.

 

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.

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