Posted on 05 March 2011
Tags: Accumulated Debt, Amount, Approach, bad debt, bankrupt, bankruptcy, benefit, busines, business, cheap, claiming bankruptcy, Collection, Collection agency, company, condition, credit, credit card, credit card companies, Credit Card Debt, credit card debt settlement, Credit Companies, debt, debt collection, debt collection agencies, debt settlement, debt settlement companies, debts, dollar, electronic money, experience, fifty cents, God, havenâ, how to, lawyers, loan, mortgage, negotiating skills, nonsense, one individual, paper money, payment, period of time, Settlement, settling debts, Settling Your Debt, something is better than nothing, Tackle, terms and conditions
Each of us is now practically surviving on electronic money rather than paper money. The reason for this is the number of credit card one individual holds. This allows people to spend money where ever they wish to. This is an inappropriate method of going about things in daily life as it would only add up to our previous debt.
Considering Settling Your Debt?
If we go onto assume that we owe more money than we can pay, we lose our job, have no way of paying out debt, even the business fails and there is nothing left we can do to do pay off your credit card debt. In such a situation, the answer to your problem would be that you don’t really have to pay the whole debt. This does not mean that you are claiming bankruptcy but it means that you are opting for debt settlement.
When you consider opting for debt settlement, credit card companies know that they would have to cooperate with you because if you opt for bankruptcy then all their money is lost. Therefore, to keep the hopes alive that you would pay, they tend to revise the terms and conditions of the amount which is owed by you.
Approach of Credit Card Companies
The reason for this is that if bankruptcy is claimed then credit card companies are last in the line and would receive no payment at all. Therefore, the strategy of something is better than nothing is considered to be better by the companies. The revised terms could be that if you owe a dollar then they could settle for fifty cents or less. With this, eventually over a period of time, your debt would start disappearing.
Process of Debt Settlement
The process of debt settlement may sound as an easy process but this is not the case in real. For debt settlement, you need to have really good negotiating skills. The reason for this is that you might have to negotiate the terms of your contract over the phone and be persistent about what you are arguing about.
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Posted on 25 January 2011
Tags: assets, attitude, bankruptcy, Business_Finance, cent, chunk, company, credit, credit card, credit card bill, credit card companies, Credit Card Debt, credit card debt settlement, credit cards, credit counseling, debt, debt consolidation, debt relief, debt settlement, good telephone manners, Home Loan, Human Interest, job, lawyer, minimum payment, money, personal finance, personal finance advice, telephone manners
Imagine a situation, You have utilized all the credit limit on all of your credit cards. you are paying the minimum payment on each of the credit card bill you are getting. Suddenly something nasty happens. You fall sick, you loose you job or your business go broke.. anything that leaves you with little or no income at all. So, It is impossible for you to pay the debt you owe on your credit cards. Well, don’t worry. you don’t have to pay.
How it is better than bankruptcy?
You might be thinking that I am suggesting bankruptcy. No, I am not. I am suggesting that you should negotiate a credit card debt settlement. You have three options.
- Negotiate the debt settlement yourself
- Hire a Lawyer to settle with credit card companies for you
- Find a Debt relief company to represent you
Why Would They Accept Less?
Why would credit card companies accept a payment less that what they owe? well, its simple. you threat them with bankruptcy. If you go bankrupt. they are the last one in the line to get anything from your assets if any are left over from your other obligations i.e. home loan etc. Credit Card Companies are smart, they will settle for anything. may be 40 cent to a dollar or less. That’s half your debt erased.
What it takes to Erase the debt?
If you got plenty of time (which is only thing you have when you are jobless) and patience. you should do your credit card debt settlement yourself. But remember it is very hard. it can take months and at times you might get very frustrated. Other skills required to negotiate a debt settlement include good telephone manners, a serious and persistant attitude and ability to absorb a great deal of ******. Its better that you let a lawyer handle it. but that will cost you. so its your choice. Read the full story
