Credit Card Debt Secrets - How To Legally Never Pay Back Your Credit Card Debt

Jan. 27, 2010 - PRLog -- Nowadays credit card companies do not resort to aggressive tactics if the debtor is unable to repay them. They instead co-operate with the debtor and help him in becoming debt free over a reasonable period of time. This is because they realize that if the debtor is forced to file for bankruptcy, the creditors will lose all their money as credit card loans are unsecured loans. Moreover, the government aid to financial institutions in the form of stimulus money has given them huge financial relief. They in turn are passing on this benefit to the debtors.

The entire process of credit card debt settlement is completely legal because the creditor annuls the original agreement and enters into a new one. The creditors also provide the debtors with a letter of full and final settlement which says that the debtor does not owe them any more money. This ensures that the debtor does not face any litigation with the creditors in the future.

The debtor can negotiate with the credit card company and reach a settlement amount much lower than the original one. The card company assesses the debtor's actual paying capacity and decides on a settlement amount accordingly. The debtor can choose to pay this amount as a lump sum or in installments. It is always better to pay a lump sum because this amount is lower than the one to be paid by installments. The debtor can also request the card company to waive off the interest on the payable amount. Moreover, the debtor can further reduce the amount payable by consolidating the various high interest card loans into a single low interest loan. The debtor can further lower the interest rate by converting the unsecured loan into a secured one. These debt settlement measures can sometimes reduce the loan by almost 60%.

It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified.

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