Credit card companies have been irresponsibly issuing unlimited credit for the last two decades are now suffering the consequences. With delinquent accounts rising, creditors of unsecured debt have no choice but to make debt settlement deals.
Online PR News – 19-October-2010 – – Credit card debt continues to be a plague amongst the American public. Coming off one of the worst recessions since the Great Depression there are more Americans on the verge of bankruptcy than ever before. Credit card companies have been irresponsibly issuing unlimited credit for the last two decades are now suffering the consequences.
Delinquent accounts are growing at unprecedented levels and many consumers simply cannot afford to pay back even their minimum payment. Even if they can make the minimum payment it is nearly all going to pay off interest and the real balance only slightly changes. For consumers with over $10,000 in unsecured credit card debt it can take nearly a lifetime to pay back their entire balance.
One popular option for debt relief is credit card debt negotiation. This allows consumers to and credit card companies to meet in the middle. The last thing that credit card companies want is for you to declare bankruptcy. When a consumer is accepted for Ch. 7 bankruptcy, creditors of unsecured debt usually receive none of their money back. Therefore to avoid a complete loss they would rather collect 50% of their balance with credit card debt negotiation.
Now credit card companies and other creditors of unsecured debt won’t negotiate with everyone. They must believe that you are a legitimate candidate for bankruptcy. The easiest way to make creditors negotiate is to make them believe you are a serious candidate for bankruptcy. The only way to do this is to go delinquent on your payments. By going delinquent for several months creditors are much more likely to negotiate with you.
Credit card debt negotiation is an aggressive debt relief option and should only be considered by consumers that are experiencing a legitimate financial hardship and have at least $10k in unsecured debt. It is not intended for individuals simply looking to get bailed out of their unsecured debts.
Debt settlement negotiation is not the only option. There’s also credit counseling and debt consolidation. Check out the following link to speak with a Debt relief specialist that can go over all your options for free: