American Debt Relief Options - How Credit Card Debt Settlement Can Save Consumers From Bankruptcy

Online, July 26, 2010 (Newswire.com) - America is the nation of consumerism. We love to consume our every instant gratification and simply put the charge on the credit card. Why not? For nearly 10 years American consumers were granted unsecured lines of credit that could fulfill their every desire. Being in debt was not only common but actually encouraged by both the government and our businesses. Now don't get it wrong. The free flow of credit is absolutely essential to keep Americas engine running. However, when unlimited credit is simply unleashed on a public already obsessed with materialistic satisfaction, you run into problems which was recently witnesses with the credit crunch and recession that followed.

There are more Americans currently in debt than at any other time in our history. Credit card balances have skyrocketed to insanely high levels and many consumers are unable to meet even their monthly payments. That $3,000 T.V. purchased 4 years ago is now costing over $10,000. Doesn't seem like a good deal now.

Credit card companies are in business to take your money. They make money off your money however, what happens if you can't pay them back? Well if you file bankruptcy the credit card company would likely get nothing. Creditors of unsecured debt are the last ones in line to get their money back. Knowing this, credit card companies are looking for other ways to collect on their debt. One of these collection tactics in known as credit card debt settlement .

Credit Card Debt Settlement is where the credit card company will agree to settle the consumers debt balance at a discounted rate. The average debt settlement was negotiated for 50% of the overall debt balance in 2009. If they believe the consumer is a legitimate candidate for filing bankruptcy it is in their best financial interest to accept the debt settlement deal. 50% of their money is better than nothing.

Consumers should only use credit card debt settlement as a way to avoid bankruptcy. In order to qualify most debt settlement companies will require that the consumer is experiencing a legitimate financial hardship and has at least $10k in unsecured debt.

The fact is that if a consumer cannot afford to make their minimum monthly payments and doesn't want to file bankruptcy, credit card debt settlement is the best option. Plus with new bankruptcy laws in effect, the process of filing bankruptcy is much more difficult and less advantageous than it used to be.

There are also other debt relief options available such as credit counseling and debt consolidation. It would be wise to speak with a debt relief specialist for a free consultation if a consumer is in serious need of debt relief.

Click the link below to speak with a debt relief specialist that will go over all the available debt relief options:

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