Credit card debts have very high rates of interest and a debtor faced with huge amounts of these debts may find them impossible to pay off. Moreover the late payment and non payment penalties levied by credit card companies are also very high. But nowadays debt settlement programs are increasing in popularity with both the debtors and the creditors. Debt settlement programs give the debtor a better alternative to bankruptcy. At the same time they help the creditors to recover at least some part of their money.
In fact through debt settlement programs and other measures, it is possible to reduce credit card debts by 60% in one year. The first step that a debtor needs to take is to negotiate the debt with the credit card company. The card company will assess his or her current financial situation and actual paying capacity. They will then settle the loan for an amount much lower than the original payable amount. If they can afford it, debtors should pay off the negotiated amount as a lump sum. This is because an amount payable in installments is usually higher than the one paid as a lump sum.
Moreover the debtor is paying it in installments he or she can request the creditor to waive off the interest on the negotiated amount payable. The next step for a debtor in this situation would be to avail a single consolidated loan with which to pay off the various credit card loans. This consolidated loan is usually at a lower rate of interest than the credit card loans. The debtor can further decrease the rate of interest by converting the unsecured loan into a secured loan. By following these methods in a systematic way a debtor can reduce credit card debts by 60% within one year.
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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