Quickly Reduce Credit Card Debt

reduce credit card debt
by YoTuT

Quickly Reduce Credit Card Debt

If you have accumulated high credit card balances and are struggling to meet your obligations, you may consider negotiating a settlement with your creditors as a way to quickly reduce credit card debt. Debt settlement is a completely legal and ethical way to get out of debt. The incentive for your creditors to settle increases once you fall more than 90 days past due and they believe you may have no choice but to file for bankruptcy protection.

Carrying an excessive level of credit card debt can take a lifetime to pay off. Balances remain high for the vast majority of people with over 95% of the monthly payments applied towards interest and fees. This is no way to live! You can quickly reduce credit card debt within as little as 18 – 30 months, if you are committed to becoming debt free.

The various options people consider when faced with such difficult circumstances include Consumer Credit Counseling (CCC), a debt consolidation loan, personal bankruptcy and negotiating a settlement. The most you can achieve with consumer credit counseling is a reduction in your interest rate. A debt consolidation loan is designed to pay back your creditors over a longer period at a slightly reduced interest rate. This path may seem desirable relative to your current situation, but this will likely take anywhere from 4 – 8 years. Should your financial circumstances weaken, you will be no better off than you were at the outset. While filing for personal bankruptcy may be unavoidable in some cases, it is a painful path to take, which will haunt the filer for anywhere from 7 – 10 years.

With bankruptcy, your case file becomes a matter of public record, easily located via Internet search by future employers, landlords or creditors.

Debt settlement represents an honest and ethical alternative to addressing an unmanageable level of unsecured debt. There are many legitimate companies with trained negotiators that can obtain a settlement ranging anywhere from 15 – 50% of the original balance. All you need to do is save the amounts you were paying the credit card companies every month, letting those balances build in your own bank account. This will provide the bulk of the funds to settle, and you will, within a relative short period of time, quickly reduce credit card debt balances. Debt negotiation firms typically charge 25% of the canceled debt, which in addition to late fees and penalty interest results in settling at 55 – 60 cents on the dollar all-in!

Unfortunately it is very difficult for consumers to negotiate directly with lenders. Reputable debt negotiation firms should understand each bank’s process for handling delinquent loans and manage each situation to the client’s maximum benefit. Negotiating a settlement is not always about what you know, but often who you know. Dealing with a cooperative person can make all the difference between obtaining a settlement offer or not. Creditors and collection agencies are not going to write off thousands of dollars without a fight, so you should be prepared to persevere. In the end, you will have reduced your outstanding debt balances and regained control of your life. Negotiating settlements in this manner is the most effective way to quickly reduce credit card debt without exception!

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