Credit Card Debt Settlements in 2010 - Is Debt Settlement a Legitimate Option?
etting access to plastic money and gaining a card has become very easy. You just have to open up a bank account and in hardly 10 working days you get a credit card. In 2010 many people have acquired credit cards. The problem starts when one becomes unable to pay back their credit card debts. People using credit card have to file for bankruptcy when they cannot think of any other way to get rid of credit card debt. Bankruptcy is a loss for both borrowers and lender and now a day's lender are persuading their clients to go for credit card debt settlement. Credit Card Debt settlement in 2010 has sky rocketed because people are becoming more and more aware of settling debt by this legitimate way.
Credit card debt settlements in 2010 have been a very good option for borrower's view point. This is because when they file for bankruptcy, their credit reports get negatively affected. If we compare debt settlement with bankruptcy we will notice that although both of these options have a negative impact on our credit rating but bankruptcy is a disaster for a credit report.
How does settlement deals in 2010 work? In settlement plans; both the borrowers and lenders negotiate or bargain on the amount of debt that need to be paid back and settle for a lower amount. This goes in the benefit of both the parties as these deals result in bringing back blocked money into circulation and saves you from paying extra.
If you are making your credit card payments regularly then you cannot qualify for debt settlement. If you have not paid any amount for past 5 to 6 months then the lending company will try to settle debt by offering you a debt settlement plan. A US citizen should have up to $10,000 unsecured debt in his account to qualify for such a program.
In the process of negotiating for a settlement a debtor will have to prove to the creditor that he has no money to pay back and will file bankruptcy to get rid of his debt. Once the creditor is certain that the debtor will not be able to pay; he offers a plan to the debtor. The debtor can negotiate on the total amount that need to be paid back and a new schedule to make the payment. The negotiated amount can be lowered by 50% and a very relaxed schedule of repayment can be figured out. Settlement is undoubtedly the most legitimate way of solving debt problem.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
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About the Author
By: arnoldfraizer
freedebtsettlementsolutions.com 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.
http://www.freedebtsettlementsolutions.com
http://www.freedebtsettlementsolutions.com
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