Issuu on Google+

Credit Card Settlement: Why It Is A Better Option Than Bankruptcy? Credit card debt settlement is accepting the fact that the debts that you have piled up, owing to incessant and irresponsible use of your credit card, are beyond your capacity to clear and you are seeking a reduction in amount from the creditors, to enable you to clear your debts and stop them from escalating heights that would leave you with no other alternative but bankruptcy. This can be done in two ways. Either you negotiate directly with the company or seek help from a credit card debt settlement company, which will negotiate on your behalf. Why Should The Credit Card Company Settle For Less? In settlement cases, more often than not, the debtor benefits the most, though it does cost him or her lot of goodwill. If you have borrowed money, you should return it - period. By negotiating a reduction you are losing your credibility and trustworthiness. The company settles because it realizes that they lent wrongly and it is better to get as much as possible now, than insist on getting the whole amount and not get any later – remember the adage: A bird in hand is worth two in the bush. That’s how it works. When Should You Put Your ‘Hands Up’ And Say, Help? You find that your savings have completely exhausted out and you are barely managing to make ends meet. Even meeting the minimum monthly payments on your credit card necessitates borrowing from friends. Collection companies are calling at all times of the day and night and there tone has changed from one of customer-uprightness to virtually menacing and hostile. You feel that if you do not manage to get some money from somewhere, a lawsuit is in the offing. These are all alarm bells that signal that it’s time you handed in the towel. What Do You Stand To Gain? A significant part of your outstanding balance is waived off, making it easier for you to clear the loan. Once you register for a legal credit card debt reduction program, your creditors will stop making collection calls and lawsuits are out and you eradicate possible bankruptcy from the overall mix. Would Bankruptcy Not Have Been A Better Option? Many people say whether you pay part of the debt or not pay at all, you are still losing face. So would it not be better not to part with whatever money you have and file for bankruptcy. No a


debt settlement is a better option. Bankruptcy costs lots more in attorney charges and the court fees are also substantial. The whole process takes between 3 and 5 years to complete, whereas in debt settlement it all depends on how fast you can clear the settled upon amount. In the latter your credit score is not badly impacted whereas in a bankruptcy it gets really badly dented. In a settlement your company handles all the negotiations leaving you free do all your work, in a bankruptcy you have to attend court hearings and attend counselling sessions. The Final Word: The best thing would be that you don’t get into debt at all and the need to settle or file for bankruptcy does not arise. Try as best as possible to keep credit burdens minimal – though if you do get into a crisis, getting a good credit card settlement company to negotiate on your behalf is the right way out of the mess.


Credit Card Settlement: Why It Is A Better Option Than Bankruptcy?