Credit Card Debt Solutions For 2010 - What Are The Best Options For Credit Card Debt?

Online, June 7, 2010 (Newswire.com) - Credit card debt is a problem that almost every American can identify with however there has never been a time in history where so many consumers are massively in credit card debt. The relaxed lending practices of the last two decades have left many Americans deeply in debt. While bankruptcy used to be the main procedure to eliminate credit card debt there are now other options which are often more favorable. So what are the best credit card debt solutions for 2010?

One of the credit card debt solutions many consumers opt for is credit counseling. Credit counseling programs negotiate the interest rates to lower levels and design a repayment plan which typically lasts 4-9 years. The consumer makes a payment which is typically the same or a little more than their current monthly minimums. For consumers who can afford their minimum monthly payments, credit counseling often makes financial sense. However, credit counseling programs are notoriously strict and will often kick consumers out of the program after just two late payments. So often times many consumers are left in a worse financial position after being kicked out of credit counseling.

Another one of the credit card debt solutions consumers opt for is debt settlement. Debt settlement is where consumers negotiate directly with their creditors and agree to pay back a percentage of their debt rather than the whole balance. The typical debt settlement is negotiated for around 40-60% of the actual balance. Most consumers will hire a debt settlement company to do the negotiating for them. Debt settlement programs require that consumers stop making payments to their creditors and instead pay into a savings account until a sufficient balance is saved up to settle the debts. Since the consumer is not making payments to their creditors the creditor will usually consider them a prime candidate for bankruptcy and therefore agree to the debt settlement.

Debt Settlement Companies settled over $1 billion in unsecured debts in 2009 alone. This resulted in approximately $400 million being collected for creditors and $600 million being eliminated off the books for debt ridden consumers. Debt settlement negotiators are basically the middle men that try to find a common ground between the creditor and the debtor. Consumers are able to get rid of some of their unsecured debts while creditors are able to collect delinquent funds that they most likely would have never collected had it not been for the debt settlement process.

Finding legitimate debt settlement companies is not that difficult but consumers must know where to look. It would be wise to utilize a Debt Relief Network that will qualify the companies for you and ensure that they are legitimate and have proven themselves. To locate the top performing debt settlement companies in your state check out the following link:

Legitimate Debt Settlement Companies