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Unpaid Credit Card
Debt Relief and Negotiation |
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Call Today: (877) 274-1260 |
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If you
successfully complete our program, it’s possible
that you’ll enjoy these benefits: |
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Settle your debts for less than you owe |
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(read here for full details about how much you can expect to save) |
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Resolve your unsecured debts in 18 to 60 months |
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(read here for full details on how
long our program lasts) |
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No Up Front Fees - Don't Pay Till You See Results! |
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| Debt Relief for Unpaid Credit Card Debt |
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For many consumers facing outstanding debt obligations, the options
of eliminating that debt are not always easy to come by.
Furthermore, how does the average debtor truly determine what
debt relief
option is the best considering their specific circumstances?
Fortunately, with levels of consumer debt rising drastically in the
United States, there is an increasing amount of literature available
for debtors to research. While a proportion of that literature may
not necessarily be very informative, people now have easy access to
basic information pertaining to their debt relief options. This
article is geared towards providing consumers with a very brief
overview of bankruptcy, credit counseling, and
debt settlement.
There are three major forms of debt relief available for consumers
today. Bankruptcy, while many suggest it should be avoided if at all
possible, is an option for consumers that can provide debt relief.
In a Chapter 7 bankruptcy, a consumer is forced to liquidate all of
their non exempt property. This property is sold and the proceeds
from those sales are used to pay off their debts. Chapter 7
bankruptcy stays on your credit report for 10 years and your public
records for 20 years. Comparable to credit counseling, Chapter 13
bankruptcy sets the debtor up on a three to five year installment
plan in which they pay a high monthly payment to a court appointed
trustee who disperses monthly payments to your creditors. Chapter 13
can prove difficult to complete as the monthly payment may not be
affordable and missing one payment can be grounds for dismissal from
the installment plan. Chapter 13 bankruptcy stays on your credit
report for 7 years and your public records for 20 years.
The oldest and probably the most familiar debt relief option outside
of bankruptcy is credit counseling. Typically, credit counseling
programs will provide consumers with debt management services that
help the individual establish a manageable budget while they are
enrolled in the program. More specifically, though, the main goal of
credit counseling is to lower the debtor’s interest rates on their
credit card accounts which can ultimately help lower the amount that
they have to pay back in the end. The programs are usually set up
for 4-5 years, and unfortunately often times are ineffective in
lowering consumers debt levels because the creditors can refuse to
reduce the interest rates altogether or payments can be
unaffordable.
A more recent debt relief option for consumers is debt settlement,
often referred to as debt negotiation. Debt settlement programs are
best suited for people who want to pay off their debt but
realistically cannot do so unless the total debt amount can be
resolved for less. In its very essence, a debt settlement program is
an alternative to bankruptcy. The consumer makes one monthly program
payment into a savings account set up in their name where the funds
accumulate and are not distributed to your creditors. Once enough
funds have accumulated and accounts are past due enough where
settlement is possible, usually after four to eight months but which
varies on a number of factors, negotiators work on the consumers
behalf to settle their balances for less than they owe. Once a
settlement is reached, the creditor is paid off with one lump sum
payment and the process continues until all the debts are resolved,
assuming the program is completed. For this to work, the accounts
must be closed down and considered past due for the creditors to
negotiate with the company. As a result, there is a negative impact
on the credit score for the debtor.
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