It makes sense why so many borrowers are looking for credit card debt assistance these days.
With the unemployment rate having reached 9.
8% (September 2009), prospects for work and increased income seem to have dwindled.
But what about people who are still employed but fear for the sustainability of their income? If it makes so much more sense to start saving rather than repaying all credit debt, what then? Fortunately, credit card debt assistance is not something reserved exclusively for people who are unemployed and not earning any income at all.
In fact, just about anyone can obtain credit card debt assistance through a credit management technique known as debt settlement.
What is Debt Settlement Put simply, debt settlement involves negotiating a reduced amount to repay your creditors.
It is almost exclusive to credit card debt, meaning that unsecured installment loans would not normally qualify (but hey, it doesn't hurt to ask anyway).
What happens is that people who need credit card debt assistance will contact their credit companies and ask to have the principal balance on their cards reduced.
This reduced amount (sometimes reduced as much as 65%) is what the debtor will need to repay.
By repaying a reduced amount, it is often believed that the debtor can then get ahead financially.
How Debt Settlement Works As noted, debt settlement involves the negotiating of a reduced amount to be repaid.
These negotiations can be outsourced to a debt company or can be done by the individual.
Remember, unsecured creditors know that if you stop paying them, they have little recourse.
They know all about bankruptcy statistics so it is often in their best interest to agree to a 65% reducing in the amount owed rather than losing all of their money in bankruptcy.
The Cost of Debt Settlement Using debt settlement in order to get some solid credit card debt assistance does come at a cost, however.
If the debtor negotiates on his or her own, there will be no administration fee.
However, a company will charge a fee, either by adding it to every monthly payment or charging it up front.
Aside from the financial costs, debtors will also see their credit score damaged.
The amount that the credit card company agrees to "write off" will be reported on the debtor's credit history.
However, the written off portion will accompany a letter from the creditor substantiating that the debt has been repaid as agreed, something that can often help debtors obtain future credit.
Ultimately, obtaining credit card debt assistance is not reserved for when debtors lose their income.
This can be achieved at any time.
With the unemployment rate having reached 9.
8% (September 2009), prospects for work and increased income seem to have dwindled.
But what about people who are still employed but fear for the sustainability of their income? If it makes so much more sense to start saving rather than repaying all credit debt, what then? Fortunately, credit card debt assistance is not something reserved exclusively for people who are unemployed and not earning any income at all.
In fact, just about anyone can obtain credit card debt assistance through a credit management technique known as debt settlement.
What is Debt Settlement Put simply, debt settlement involves negotiating a reduced amount to repay your creditors.
It is almost exclusive to credit card debt, meaning that unsecured installment loans would not normally qualify (but hey, it doesn't hurt to ask anyway).
What happens is that people who need credit card debt assistance will contact their credit companies and ask to have the principal balance on their cards reduced.
This reduced amount (sometimes reduced as much as 65%) is what the debtor will need to repay.
By repaying a reduced amount, it is often believed that the debtor can then get ahead financially.
How Debt Settlement Works As noted, debt settlement involves the negotiating of a reduced amount to be repaid.
These negotiations can be outsourced to a debt company or can be done by the individual.
Remember, unsecured creditors know that if you stop paying them, they have little recourse.
They know all about bankruptcy statistics so it is often in their best interest to agree to a 65% reducing in the amount owed rather than losing all of their money in bankruptcy.
The Cost of Debt Settlement Using debt settlement in order to get some solid credit card debt assistance does come at a cost, however.
If the debtor negotiates on his or her own, there will be no administration fee.
However, a company will charge a fee, either by adding it to every monthly payment or charging it up front.
Aside from the financial costs, debtors will also see their credit score damaged.
The amount that the credit card company agrees to "write off" will be reported on the debtor's credit history.
However, the written off portion will accompany a letter from the creditor substantiating that the debt has been repaid as agreed, something that can often help debtors obtain future credit.
Ultimately, obtaining credit card debt assistance is not reserved for when debtors lose their income.
This can be achieved at any time.