Credit Card Debt Solutions In 2011 - Why Debt Settlement Is The Cheapest Option Now

Feb. 27, 2011 - PRLog -- There are various credit card debt solutions in 2011. Of all the available methods, the method of debt settlement is the cheapest option now. There are several reasons for this claim. The reasons are explained below:

   * The method of settlement takes 1-3 years. This is the shortest of all the methods. This save a lot of time for the consumers. The consumers can actually invest this time in earning more money and hence, the method has the least opportunity cost among all the options.
   * As far as the direct costs are concerned, the method is again the cheapest because of the fact that the settlement firms charge only 6-15% of the overall outstanding as their fee which is the least among all the methods. There are no expenses for legal hassles because there are no legal hassles at all and even if there are some, the negotiators deal with the same.
   * The consumers need not pay the whole of the outstanding to the creditors. The minimum that they need to pay is 30% and the maximum that they need to pay is 50%. Whatever be the case, the amount of savings is significantly higher compared to the other methods.
   * If the consumers can prove that they were insolvent during the settlement filing, they don't have to face federal taxes on the amount of money saved from the method and hence, the method becomes even cheap.

It is because of the above mentioned reasons, it can be said that the method of debt settlement is the cheapest option now.

With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.

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