Debt Relief Tips - How to Stop Interest Payments and Settle Credit Card Debt
If you are looking for debt relief tips and want to know how to stop interest payments and settle credit card debt then, you must stop thinking of bankruptcy.
Instead divert your concentration on settlement negotiation.
Though bankruptcy eliminates the debt completely, there are several financial problems which the consumers face only after they successfully file for bankruptcy.
The problems that the consumers face are loss of credibility for 7-10 years and they become sub-prime consumers.
This means that they can take further credit only after 7-10 years and the rate of interest charged will be higher than the market rate of interest.
Debt settlement on other hand does not have these problems.
However, settlement cannot eliminate the debt completely.
It can eliminate only a certain percentage of the due.
How does settlement work? Settlement needs you to have an overall debt of $10,000 or more and it also requires that the loan must be consolidated in one single place.
In case the loan is not consolidated, you need to accumulate the same in one single place.
It is always advised that you hire a professional settlement company for negotiating with the creditor.
A professional company has a vast experience in the field of settlement and therefore, the expert negotiators will know exactly how much to push the lenders to bag a good deal for you.
The professional expert from the company that you hire will ask you to go delinquent in order to prove that you are in trouble and that you cannot repay the debt in full! As you go delinquent, the creditor decides to wait for 90-120 days and then sells off the debt to a collection agency at 20-30 cents on the dollar.
The creditor here lies on the losing end.
The negotiator knows when this deal is signed.
He then contacts the creditor with a far better deal of 40-50 cents on each dollar.
The creditor accepts the same because it gives 100% return on investment for the collection agency.
The creditor then eliminates the debt by 50%.
This is how you stop interest payments and settle credit card debt.
Instead divert your concentration on settlement negotiation.
Though bankruptcy eliminates the debt completely, there are several financial problems which the consumers face only after they successfully file for bankruptcy.
The problems that the consumers face are loss of credibility for 7-10 years and they become sub-prime consumers.
This means that they can take further credit only after 7-10 years and the rate of interest charged will be higher than the market rate of interest.
Debt settlement on other hand does not have these problems.
However, settlement cannot eliminate the debt completely.
It can eliminate only a certain percentage of the due.
How does settlement work? Settlement needs you to have an overall debt of $10,000 or more and it also requires that the loan must be consolidated in one single place.
In case the loan is not consolidated, you need to accumulate the same in one single place.
It is always advised that you hire a professional settlement company for negotiating with the creditor.
A professional company has a vast experience in the field of settlement and therefore, the expert negotiators will know exactly how much to push the lenders to bag a good deal for you.
The professional expert from the company that you hire will ask you to go delinquent in order to prove that you are in trouble and that you cannot repay the debt in full! As you go delinquent, the creditor decides to wait for 90-120 days and then sells off the debt to a collection agency at 20-30 cents on the dollar.
The creditor here lies on the losing end.
The negotiator knows when this deal is signed.
He then contacts the creditor with a far better deal of 40-50 cents on each dollar.
The creditor accepts the same because it gives 100% return on investment for the collection agency.
The creditor then eliminates the debt by 50%.
This is how you stop interest payments and settle credit card debt.
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