It seems quite illogical that how is it possible to get rid of 50% of the debt without paying? But the recent recession in the economy has forced the financial institutions to look over their policies again.
When the recession was there, people did not find any means to pay back.
As a result, a lot of people declared themselves as bankrupt.
When a person is declared bankrupt then he is not liable to pay anything.
The Court protects him because he has proved that he has nothing to offer.
Increase in this tendency forced a change in the policies.
As financial institutions were facing major losses, the government jumped in and this jump gave birth to the debt settlement plan and debt relief companies.
Now these companies fight your case on your behalf with the financial institution.
When you hand over your case to a reliable debt settlement company, it is their job to bring debt relief for you.
The science of a credit card is that the loan which you utilize in the form of plastic cash has a very high interest rate.
Very often, it happens that a person pays so many installments and misses just one, which results in a lot of calls from these card companies.
He always wonders that I just missed one installment and still so much pressure is exerted on me.
But when he checks his balance, he comes to know that there is major loan on him in form of high interest.
Actually, this interest rate is what is reduced from his balance.
When you go for a settlement, your selected settlement company will know that the major loan over you consists of this interest.
They will fight the case and will force the financial institution to not only cut down the monthly installment but also the balance.
They will simply cut off the interest amount from the remaining balance and you will see that your loan will be reduced to more than half.
This is the way through which you can legally avoid paying back 50% of your credit card debt.
Moreover, in some cases you can also avoid paying even half of the balance.