Credit Card Debt Reduction - Why Pay Credit Card Debt in Full When You Can Eliminate 50% First

May 11, 2010 - PRLog -- Credit card debt reduction has become very important now because the US economy has been hit by a deadly recession which has forced the employers to eliminate a major part of the work force. This means that thousands of Americans have lost their jobs and are finding it difficult to manage their expenses and are unable to meet the various financial obligations like credit card debt repayment. Consequently, they are filing for bankruptcy and are losing their credibility. They are hampering their credit score and the report of bankruptcy filing stays in their credit history for a period of at least 7 years!

On the other side of the fence, the creditors are also in trouble because, as the debtors are successfully filing for bankruptcy, the creditors are losing their liquidity and are unable to meet their own organizational and operational expenses. This is pushing them towards bankruptcy and the situation of recession is becoming even more serious. This is the reason why the creditors are ready for credit card debt reduction through debt settlement negotiations. So, why pay credit card debt in full when you can eliminate 50% first?

Credit card debt reduction is a good option if the total debt amount of the debtor is $10,000 and more. The debtor must then consider hiring a professional debt settlement company for negotiation with the creditor. The consumer is advised by the professional negotiator to go delinquent. This might be a tough decision but as soon as the consumer stops paying the creditor, the later waits for a period of 90-120 days and then sells off the debt to a collection agency for as little as 20-30 cents on the dollar.

It is then that the professional negotiator contacts the creditor and offers a better deal of 40-50 cents on the dollar which is 100% of ROI for the collection agency and also means at least 50% savings for the consumer because as the creditor agrees to the condition, the creditor will eliminate at least 50% of the debt the consumer has. Thus credit card debt reduction becomes a viable proposition by debt settlement.

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.

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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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