Credit Card Debt Solutions For 2010 - Why Debt Settlement Could Overtake Bankruptcy

Online, May 24, 2010 (Newswire.com) - There are more Americans deeply in credit card debt than at any other point in our history. This is mainly due to the irresponsible and unregulated lending practices over the last decade. For consumers with $10k or more in credit card debt it will take nearly an entire lifetime to pay back the debt in full if they were to continue to make the minimum payments. Credit card companies are jacking up their interest rates making even the monthly minimums difficult to pay for many. If consumers are struggling to pay their monthly payments or just don't want to spend their whole lives trapped in debt they often opt for debt settlement instead of filing bankruptcy.

Many consumers that are experiencing a financial hardship and have at least $10k in unsecured credit card debt are opting for debt settlement. Debt settlement is where consumers are able to pay back a percentage of their credit card debt and the creditor agrees to forgive the rest. This is typically the last option before filing bankruptcy. Creditors will agree to take partial payment if they believe the consumer is a legitimate candidate for bankruptcy because if the consumer were to declare bankruptcy they would likely receive nothing. 50% of their money is better than nothing for most creditors of unsecured debt.

A credit card debt settlement will typically affect a consumers' credit score for 2-4 years while bankruptcy will affect a credit score for at least 7 years. Any debt settlement company that says credit scores will not be affected are not being truthful and probably not worth doing business with. Consumers who opt for debt settlement ultimately make the decision that they'd rather eliminate a bunch of their unsecured debt rather than have a high credit score.

The average debt settlement is around 50% with the help of a legitimate debt settlement company. 50% debt elimination is just the average and results vary depending on several circumstances most importantly the skill of the particular debt settlement company in negotiating consumer debts. Some companies are just flat out better than others

Unfortunately many debt settlement companies are taking advantage of desperate consumers and making promises they simply cannot fulfill. This is why it is very critical for consumers to know how to locate legitimate debt settlement companies that have a proven track record in settling consumer debts. The easiest way to find legitimate companies is to visit a Free Debt Relief Network . There, consumers will be able to locate the best debt settlement companies in the country and also receive a free debt consultation to determine what the best debt relief option is. These networks are free to use and have helped thousands of consumers avoid being ripped off.

To locate the top performing debt settlement companies in your area for free debt relief advice check out the following link:

Legitimate Debt Settlement Companies