Credit Card Debt Help - How Consumers Can Legally Stop Paying Credit Card Debt

April 29, 2010 - PRLog -- Credit card debts are unsecured loans hence they have very high rates of interest. If you have accumulated a large amount in card debts it will take no time for it to double or become three times in a very short time. At the same time a common debtor usually has other loans like home loan, car loan, consumer loan etc to deal with. On the other hand incomes are dwindling because of the current recession in the economy. This is the reason that many people get burdened with massive loans and are unable to repay them. In desperation they start contemplating bankruptcy. However, bankruptcy can destroy a person financially and socially it becomes impossible for such an individual to get any kind of credit or loan in the market. A bankruptcy stays on an individual's credit record for 10 years and on the public record for ever.

However now there is a way to stop paying your card debt and reduce it by 50%. Most card companies realize that if they compel the debtors to pay money which they do not have the debtors will be forced to file for bankruptcy. In such a situation the card company will lose all its money because there is no collateral attached to card loans. This is the reason that credit card companies are nowadays proactive in offering debt settlement programs to the debtors. In this way they can at least recover some of the money owed by the debtor. Under a debt settlement program a debtor can negotiate the total loan amount with the card company. The credit card company then analyses and assesses the actual paying capacity of the debtor and decides upon a settlement amount.

This entire procedure is legal because the card company agrees to ignore the agreement signed at the time of giving the loan and enter a new agreement with the debtor. The card company also provides this new agreement in writing. In fact once the negotiated amount has been paid in full the debtor is provided with a letter of full and final settlement.

If you are struggling with paying back your credit card debt or any other unsecured debts there is legitimate help out there. Debt settlement usually makes financial sense for consumers with over $10k in unsecured debt. There are also other options available.

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FreeDebtSettlementSolutions is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

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