Eliminating Credit Card Debt

If you are on a fixed monthly income, you may be thinking bankruptcy is the only way out of debt. There is a way to eliminating credit card debt without having to resort to bankruptcy. Discover the information you need before you file bankruptcy and ruin your credit for 10 years. You don’t want to have to ruin your credit for 10 years or more and still be in debt.

This is not about consolidating your debts or using credit counseling. Those debt methods do not eliminate your debts. Basically, you get a longer time to pay the same amount of debt with a lower interest rate. So these methods are thrown out. Even though they are touted as some of the best credit debt cures you can find.

But look at who is promoting these methods. It was the credit card companies who funded the credit counseling companies. So they have a big interest in steering you to credit counseling.

So that leaves only debt settlement or debt negotiation as you may know it. With debt negotiation, you negotiate with your creditors and offer a partial payment for the full balance you owe. Your creditors will be more willing to negotiate when you are 3 to 6 months behind on your payments.

With debt negotiation, you can erase your credit card debt quickly. You can get a 60% settlement on a $50,000 balance and save $20,000 for example. Sometimes you can save more or less. But the credit card banks already know this because so many people are falling behind on their payments. People are drowning in debt and unable to keep up with their payments let alone get the balances reduced.

The creditors lose money when they have to write off or charge off what you owe so they would rather get 50% of the balance instead of recording the full 100% as a loss. They have to please their investors.

You could do everything a company would do for you for yourself. You can negotiate with your creditors on your own and save thousands. So read a book, or buy a home study course on how to DIY credit debt elimination. This is by far the most effective method for eliminating credit card debt without filing bankruptcy.