Credit Card Debt Bailouts - How Americans Are Avoiding Bankruptcy And Eliminating Credit Card Debt

Online, June 2, 2010 (Newswire.com) - Many Americans lately have been avoiding bankruptcy and eliminating their credit card debt at a significant savings. These credit card bailouts are coming from the use of a program called credit card debt settlement . Debt settlement is the process of negotiating the balances of credit card debt or any unsecured debt to a significant savings. This debt relief option does carry consequence with it however, mainly a drop in the consumer's credit score. So after much debate, here we take a look at the legitimacy of the debt settlement process and also what other debt relief options exist for debt-ridden Americans.

Credit counseling is a method that is different than debt settlement in that they only negotiate the interest rates. Debt settlement attacks the balances of the unsecured debt and that is the reason that it is a much shorter program. A credit counseling program can take between 5 to 9 years where a debt settlement program can achieve financial independence for a consumer in 1 to 4 years.

To the consumer, credit card debt bailouts such as debt settlement are very effective at avoiding bankruptcy and eliminating their credit card debt. Debt settlement is made for someone in a financial emergency and foresees themselves in a position where paying even their minimums is not an option. Usually in this situation the consumer would attempt to file for bankruptcy but now they have a legitimate and legal option to save themselves a lot of heartache and mental stress that accompanies bankruptcy.

Bankruptcy laws that came into action in 2005 have made it very difficult to even attain bankruptcy. Chapter 7 bankruptcy is nearly impossible to qualify for and under chapter 13 bankruptcy the consumer may have to pay 30-60% of their debt back. Debt settlement credit card debt bailouts typically save the consumer around 50% of their unsecured debt without many of the negative consequences that come with bankruptcy.

With credit card bailouts out there such as debt settlement and bankruptcy should truly only be used as a last resort to relieve a consumers debt.

To get a free debt consultation through a Debt Relief Network check out the following link. Debt relief networks will analyze the consumer's financial situation and provide them an unbiased view on what debt relief option makes the most financial sense.

Free Debt Reduction Help