If a debtor finds himself or herself faced with huge credit card loans, sometimes it is best to opt for a debt settlement program. A debtor can negotiate the settlement amount with the credit card company. The creditors will assess the debtor's actual paying capacity based on his or her income and total debts. They will then decide upon an amount which the debtor can choose to pay as a lump sum or in installments. It is better to pay a lump sum if one can afford it because the payable amount will be lesser than that payable in installments.
The debtor can also request the creditor to re-age the account so that it does not show as delinquent on his financial records. The credit company will also waive off the interest on the amount payable making the burden even lighter. The debtors can ask the credit card company for a letter of full and final settlement which will ensure that the debtor's credit scores do not get damaged. In fact on request the creditors may also make favorable statements in the letter in favor of the debtor.
There are other ways of reducing a credit card debt. A debtor can pay off the various credit card loans with a single consolidated loan. This consolidated loan is usually at a much lower rate of interest than the credit card loans. The total rate of interest can be further reduced by converting the unsecured loans into secured ones. This makes the lump sum amount or the installments payable more affordable. Even those debtors who do not qualify for debt settlement programs can utilize some benefits like debt consolidation, moratorium, conversion of unsecured loans into secured loans etc. and reduce their total credit card debt. One can hire a debt settlement company or conduct the negotiations oneself.
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. They are free to use and offer helpful debt relief advice.
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