Credit Card Debt Reduction - Credit Card Consolidation Vs Debt Settlement Negotiation

Feb. 25, 2011 - PRLog -- Many people who are filling for bankruptcy don't actually realize that they are missing a great opportunity of credit card debt reduction through debt settlement. Many people blindly file petitions for bankruptcy and face worse consequences afterward. Credit card debt reduction can also be obtained through credit card consolidation.

In the consolidation process, a person has to take another secured loan in order to pay unsecured loan of creditors. This new loan is taken by putting some fixed property as security so it has small interest rate. This little interest rate reduces the debt. This process may take a few years to complete but it will save your financial life. Moreover, you will get rid of disturbing calls of collectors. No more sudden visits of these officers will take place. On one hand, a person gets out of unsecured loan but on the other hand, he becomes the victim of secured loan. So he should choose this option after considering all of its consequences. In case, he is not able to pay the secured loan, his property will be in great danger. None the less, he can successfully reduce interest rate through this procedure.

Debt settlement negotiation may prove a hard pill to swallow for many debtors because the negotiation process is not very easy. But it comes out with good results that will secure your future life. Credit card debt reduction will get you out of debts without paying it in full. As compared to credit card consolidation, complaints against debt settlement have significantly reduced because new Federal laws have improved quality of service provided by settlement companies. Moreover, upfront fees of these companies have been banned. Professional lawyers have more experience so they can get a good deal in less time.

Filing bankruptcy may get you out of the debts as a whole but it will make your life worthless afterward. FICO scores will be lowered and you will face worse financial crisis in your life. Consolidation and settlement both are good credit card debt reduction techniques. Both are legal and have legal support of the United States government.

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.
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