Personal Debt Relief Options - How You Can Easilly Eliminate Credit Card Debt Through Negotiation

May 11, 2010 - PRLog -- Personal debt settlements have become the most important requirement of the recent times because most of the people are neck deep in debt that has made their life a complete mess. The situation has become worse because of the recession that has hit the US economy. Thousands of people are losing their jobs and are unable to repay the creditors. They are finally filing for bankruptcy and are creating even more problems for themselves. It has therefore become very important for the consumers to eliminate credit card debt as soon as possible and lead a debt free life.

The best thing that a consumer can do is to go for personal debt settlement and eliminate the credit card debt through negotiation. The process may sound a bit difficult but it actually is not. There are a few requirements that a consumer need to maintain before he or she goes for debt settlement. The most important thing that is required is that the consumer needs to have an overall debt of $10,000. The next thing that the consumer has to do is to contact a professional debt settlement company that has a good experience of successful negotiations.

Once the consumer hires a professional company, the professional negotiator from the company advises the consumer to go delinquent and stop paying the creditor. Once the consumer stops paying, the creditor waits for a period of 90 days to 120 days and then sells off the debt to a collection agency for as little as 20 cents to 30 cents on the dollar. It is then that the professional negotiator from the settlement company hired by the consumer contacts the creditor and offers a better deal of 40 cents to 50 cents on the dollar which means 100% ROI for the collection agency. The creditor agrees to this and eliminates at least 50% of the debt.

Once the creditor agrees to this, the debtor has to repay the remaining amount of money to the creditor in one single payment. This is how a consumer can easily eliminate credit card debt through negotiation.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.

http://www.debtreliefemergency.com