Debt Settlement Advice
Friday, October 9th, 2009 Subscribe To Our Feed
There are many reasons why debt settlement is one of the best debt cures you can use. Contrary to what you may believe, bankruptcy will not wipe out all of your debt unless you qualify for Chapter 7 which is getting harder every year. The new laws made the requirements for Chapter 7 much harder to reach. So a better alternative to filing bankruptcy is to negotiate with your creditors and aim for a settlement. In the short article, I will give you some debt settlement advice to help you learn more about it and understand why you should use it instead of filing bankruptcy or using debt consolidation or other debt elimination methods.
So what exactly is debt settlement? Debt settlement comes up with you and your credit card company when you are several months behind on your credit card payments and the credit card company does not want to lose your account to bankruptcy. They would rather settle your debt for a percentage of what you owe right now than to go through a bankruptcy and wait some more years to get paid through the bankruptcy court.
On average you can save 50% of what you owe to your creditors. This would be the same as slicing your monthly credit card payments in two. When you use this it's easy to get out of credit debt. That’s what makes this one of the most powerful credit debt cures you can use.
I would not worry about interest rates when you are trying to get your balances paid off in full with one payment with debt settlement.
You also do not worry about your credit score. If you were thinking about bankruptcy your credit score was going to get ruined anyways. Bankruptcy will be a matter of public record. With debt settlement your credit score will still drop but it will not be in the public record like bankruptcy. You would be surprised at how easy it is to start rebuilding your credit once you have no credit card debt.
