Credit Card Debt Relief - How to Consolidate Then Settle 70% of Your Unsecured Debts

Credit card debt is a huge burden for most consumers and seems to have no end in sight even when you pay it back in monthly installments.
By: Bernard Okoth
 
June 4, 2010 - PRLog -- Most creditors will often want to make you believe that you can actually clear your debt by paying the minimum amount due each month.

This is a fallacy which you should never fall for, since it is just another ploy engineered by your creditors to get more money from you, as the years come and go past with your owing debt amount seemingly constant and never reducing.

If you choose and apply for debt settlement, most settlement companies will equally tell you to stop paying your creditors.

Having too much debt doesn't mean you can not eliminate it with a carefully thought out debt reduction plan. If you owe credit borrowed from different lenders you can try debt consolidation.

A debt consolidation process will sum up all your outstanding debts and grant you a loan to pay back the credit. The interest rates of a consolidation loan is usually smaller than the rates applied by your creditors, enabling you to fully pay off your debt.

It is best to try and mix debt consolidation with debt settlement. Imagine the possibility of taking a big loan to pay off all your small debts, and then having your bigger debts reduced by up to 60%.

Debt settlement negotiation can help reduce your debt amounts by as much simply by holding negotiations with your creditors and offering them a good settlement deal, so as to avoid bankruptcy.

Ensure beforehand that you are comfortable with both debt consolidation and settlement since when you borrow a loan but are unable or stop paying it back, be prepared for those harassing debt collector and creditor phone calls.

There are many options to clear your debts, bankruptcy being one of them. Though it is as viable as debt relief solutions, it has a lasting damaging effect on your credit score meaning you will not be able to access credit for up to 10 years the moment you file for bankruptcy.

If you still have plans of getting a loan anytime in the future and are just looking for a way out of your debt situation, it is better to eliminate 60% of your debt and pay off the remaining amount, so as to repair your credit score and improve on your ratings.

Debt settlement is a legitimate debt relief alternative to bankruptcy. If you as a consumer has over $10k in unsecured debt and currently experiencing financial problems, a settlement can make a difference to your financial hardships. For free debt consultations, visit: http://www.owingdebt.com

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About ways to get a 100% confidential FREE online savings estimate with no obligation whatsoever, visit: http://www.owingdebt.com
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