The Best Credit Card Debt Relief Options For 2010 - How Americans Are Dealing With Too Much Credit Card Debt
Credit card debt was readily available over the last two decades and many Americans spent wildly and are now desperately in need of credit card debt relief. So what are the best debt relief options?
Online, June 7, 2010 (Newswire.com) - Americans have never been so massively in debt. Credit card debt was readily available over the last two decades and many Americans spent wildly and are now desperately in need of credit card debt relief. There are a few options that debt ridden consumers can choose to help ease the pain. So what are the best options for credit card debt relief in 2010?
The world revolves around debt! It is an interesting phenomenon. The credit creation fuels the economic expansion of the world thus bridging gaps between the borrowers and the financiers. The allure of the cheap credit has never been more intense since the establishment of the borrower-lender relationship. But, the availability of credit itself causes another hazard. Once you borrow, how do you repay?
The obvious way to stay safe is by not falling into the trap of credit card debt. The golden rule is, never borrow beyond the capacity to repay. However, if consumers are already out of the comfortable zone, the golden rule does very little to help! Therefore, let us now look at some of the options available for consumers to find legitimate credit card debt relief !
If consumers are confident that their income would improve in the near future or that they are getting a new job, they can negotiate on a grace period on for the monthly installments. If this is not possible, try to obtain an interest rebate on the loan for a lump sum settlement of the loan. Consumers can sell off idling vehicles, property or any other disposable assets and cut down the interest expense. If this method also fails, try one of the following.
It's no secret that the economic meltdown has made thousands of people redundant and has raised the unemployment level to an all-time high. This in turn has had a knock-on effect on the debt markets and the lenders are well aware of the risks. If consumers have a genuine case where they fall into the above category of borrowers who want to settle debts but are unable to do so due to the inadequate income and the lack of free cash flows, most creditors will be more than willing to a sizable discount on the debt. As default trends are on the rise, no lender wants to see another borrower defaulting on the debt. They will try to salvage some return - or at least recover some of the capital which they have lent. This will give consumers a greater bargaining power in negotiations. So, try to use the advantage and obtain a good discount.
Another option available for consumer credit card debt relief is consulting a debt settlement company . These companies will negotiate with the creditors to get a better discount and an affordable repayment plan set up. The discount, on average, would be around 50% - 60% of the total unsecured debt.
If consumers are really struggling to meet the monthly installments and all the efforts to arrive at a negotiated settlement have failed, the next option available is obtaining legal advice on filing for Bankruptcy under Chapter 13 or Chapter 7 of the Bankruptcy Code. Bankruptcy is the last resort for the distressed borrower.
Before selecting any credit card debt relief option it would be wise of consumers to talk with a debt relief professional. Check out the following link to get a free debt consultation from a debt relief specialist in your state. They will provide free help and point consumers in the best direction.
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Tags: bankruptcy, credit card debt relief, Debt Solutions, get out of debt, settle credit card debt, unsecured debt
