Get Debt Relief - Get Rid of Unsecured Debt and Reduce Interest Rates Through Settlement

April 15, 2010 - PRLog -- In my opinion, even a 50% discount is not going to be of any use to help the average American individual get out of debt problems. A debt of $20,000 will come down to $10,000 and this will have to be repaid over a span of 12 -18 months. Sounds great?

Well, when you consider the high interest rate charged by credit card issuers and when you calculate the interest factor as well, you realize that you will be paying more than $10,000 in the specified time frame. Further, the card issuers will be very strict and will not tolerate even a single instance of default in repayment.

William Roberts, editor of http://www.Remove-Debt-Today.com, notes the importance of advocacy for consumers during this economic period:
“The public is experiencing a severe crisis with debt and agencies must be set up for the large amounts of people who will require assistance.”

The card issuers may very well bypass the card act and may insist that the balance $10,000 will be treated as old debt. In such a scenario, the interest rate may increase to very high levels. This combined with the fact that the current interest rate charged by credit card issuers is very high means that the interest factor will have to be considered as well.

Well, if you employ a debt relief professional and if you negotiate on this point with your credit card issuer, you can easily get relief on the interest factor as well. You can either demand an increase in the total repayment term or you can request a reduction in the interest rate. If the credit card issuer refuses, you can always indicate that the basic purpose of the settlement deal is to help you avoid bankruptcy.

If the card issuer is going to be stubborn, you might as well cancel the whole deal and go in for bankruptcy. If you file for bankruptcy, the credit card issuer will automatically lose benefits of the stimulus package and will also lose 50% of the debt owed. A reduction in profit has already taken place.

Hence, the credit card company will not hesitate bringing the debt down even further as long as it helps the individual repay the debt on time. The basic purpose of the debt settlement deal is to provide assistance to the credit card issuer and the credit card holder. If you make use of settlement, you certainly can get relief on this point is well.

On the other hand, if you try repayment of debt in full, chances are high that your interest rate would not come down at all. In case of bankruptcy, the question of interest rate does not arise but your credit score and credit history will take a huge hit.

http://www.Remove-Debt-Today.com

# # #

If you are one of the millions of Americans who has over $10,000 in unsecured debt, it is time you found out about the debt settlement options available to you. Due to the current economy an overwhelming amount of people are in debt, creditors are having no choice but to agree to debt settlement deals.

http://www.Remove-Debt-Today.com