Settling credit-card-debt

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Bankruptcy doesn’t have to be an inevitable destination if you have large debts! If you are thinking about settling credit card debt, and have large debts, then maybe credit card debt settlement is the best solution for you.
Credit card debt settlement is by far the fastest way to settle their credit card debt, without filing for bankruptcy. Credit card debt settlement is really quick because it results in a one-off settlement with your creditors, usually within a period a year or so. It is very fast, especially when compared with credit card debt consolidation and budgeting.

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Settling credit-card-debt

  1. 1. By Dermot Farrell Copyright © 2012 http://www.CreditCardDebtSecrets.orgThe Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
  2. 2. Bankruptcy doesn’t have to be an inevitable destination if you have large debts! If you arethinking about settling credit card debt, and have large debts, then maybe credit card debtsettlement is the best solution for you.Credit card debt settlement is by far the fastest way to settle their credit card debt, withoutfiling for bankruptcy. Credit card debt settlement is really quick because it results in a one-offsettlement with your creditors, usually within a period a year or so. It is very fast, especiallywhen compared with credit card debt consolidation and budgeting.For example, budgeting usually take’s several years to completely eradicate the debt,because with budgeting the debtor is simply paying off the debt on a monthly basis with nochange in the debt payment structure. Consequently, since minimum payments usually takeat least 7 years to pay off the debt, unless the debtor pays off a significantly greater amountthan the minimum payments per month on the full spectrum of their credit cards, theturnaround time will still run to several years, often as much as three, four or even five years,if the debt is high enough.If we take a look at credit card debt consolidation, it simply reduces the interest on thedebt, so the debt remains the same. Because it restructures the interest on the loans, atleast it makes for a faster turnaround time than that which is experienced by budgeting. Withcredit card debt consolidation, it usually runs into two or more years before the debt issettled.When we compare this to credit card debt settlement it results in a settling up of credit carddebt, usually within one to one and a half years… and even more quickly in some instances, ifthe debtor can come up with a one-off settlement within a shorter time frame. The Key to Credit Card Debt SettlementCredit card debt settlement requires that the debtor sign up with a credit card debtsettlement company. The debtor then stops paying their individual creditors. Instead theypay this money into a special designated bank account. Usually they will sell off some assetsso that they can accumulate money in this account quickly, because simply putting themoney aside, which they used to use to pay their monthly minimum payments, will rarely beenough to make a one off payment within the credit card debt settlement period.Once the account builds up, the debt settlement company begins negotiating with thecreditors and seeks a reduction in the debt. The negotiated credit card debt settlementfigure tends to be around 50 to 60% of the original figure.While on the face of it debt settlement sounds like an easy credit card debt settlementoption because it reduces so much debt, and it manages to do this within a very short timeframe of a year or so. However, it does have some rigorous stipulations. The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
  3. 3. Basically, unless the debtor can acquire approximately 50% of the debt balance, within aabout a year, the settlement process will end up going nowhere!Also, there are important considerations, for anyone who is interested in reducing credit carddebt. With a debt settlement plan it has other downsides, such as a downgrading of thedebtors credit score, possible law suits and more than likely a tax liability on the reduceddebts! So Why Opt for Settling Credit Card Debt with a Debt Settlement Plan Instead of Using Other Debt Reduction Strategies?While debt settlement has some downsides, it does work very well for debtors who haveconsiderable debts. Because of this, credit card debt settlement works best for debtors whohave large debts and who have been thinking about filing for bankruptcy. Becausebankruptcy has a lot of downsides anyway, such as the downgrading of the credit ratinganywhere from 8 to 10 years, depending upon the type of bankruptcy; the fire sale of most, ifnot all, of the debtors assets; and a public record of their bankruptcy.In summary, bankruptcy has more downsides than credit card debt settlement!With debt settlement, the debtor is also interested in settling credit card debt very quickly.However, with credit card debt settlement, the debtor does not have their credit score badlyaffected for such a long time. Furthermore, with credit card debt settlement, the debtor maywell sell off some assets in order to gather enough money to make the debt settlement.However, unlike bankruptcy, the debtor is in control, and they have a year or so to completeit. So there is no need to fire sale their assets.For anyone, who is thinking about settling credit card debt quickly, and who does not likethe idea of filing for bankruptcy, then credit card debt settlement could be the better choicefor them! For any credit card debtor, who is thinking of settling credit card debt, and whohas large debts to sort out, then it is certainly worth their while seriously considering thedebt settlement option, before filing for bankruptcy program! The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org

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