Credit card debt can become a very severe problem in your life. The best way to use a Credit card is to make regular and timely payments. Defaulting on payments or making minimum payments only for prolonged period of time can gradually build up your debt. Once the debt has made a beginning in your account it will stay till such time you make concerted efforts to clear it.
There are many ways of seeking debt relief. You need to find the solution that is best for you and meets your repayment plans. By the way did you ever have a repayment plan. Not having a proper plan to pay back your debt can land you in severe trouble. Debt consolidation and debt settlement are two good plans to clear your debt. Let us take a look at both the methods. A debt consolidation plan aims at putting all your debt under one basket. You can either go in for a balance transfer to the Credit card with the least rate of interest or go in for a consolidation loan. Unsecured Debt under all types of Credit cards is put under one head. You can clear it off in one go using the consolidation loan. The consolidation loan is then paid back in easy installments. The point to note is you will still be in debt till such time the consolidation loan is not paid back.
The other tool available for debt relief is debt settlement. Here you go in for negotiating your debt with the Creditors. The Creditors are also under trouble and are worried about most of their debtors filing for bankruptcy. Should that happen the Credit card companies will be in deep trouble. They want to avoid this situation. Therefore they are willing to negotiate the outstanding amount for consumers having a debt of more than $10,000. They may waive even 50 percent of the net outstanding if you negotiate well. The other half has to be paid by you in a lump sum payment. Debt settlement is the only form of debt relief where you can legally eliminate debt without paying it back in full.
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