Debt relief is a legal option for wiping out your bills, sometimes by as much as 50%. What does this do? Does it give you flexible payment options? Do you get an extension to pay? The answer to both of these questions is no.
This is not a magic solution for your problems. What this can do for you is reduce what you owe and eventually restore your credit rating. The method we are discussing here is debt settlement. Settlement is different from debt consolidation. The two things are easily confused, but they are different. Each of these solutions has its benefits and each one has its demerits but settlement can help you to eliminate credit card debt legally.
1. Debt consolidation.
Consolidation combines all of a person’s various debts into one lump sum. Negotiators work with creditors to reduce or eliminate fees and percentage rates on the borrowers different credit accounts. The debt negotiator will the collect one consolidated monthly payment from the consumer and then distribute it to the various creditors. This option does not reduce the person’s original debt and is not the best solution to eliminate credit card debt legally. The benefit to this option is that it is less destructive to your credit than either bankruptcy or debt settlement. You can pay off your debts over a period of time. Once your debts are paid off, then your credit will be restored. This is not the case with bankruptcy which will remain on your credit report for 7-10 years.
2. Debt settlement.
Settlement reduces the actual amount of principal debt. A debt negotiator will work with creditors, or more often, debt collection agencies to reduce the amount of money owed. Once the repayment amount has been agreed to by all parties, the debt negotiator will collect the money from the debtor, hold it in trust, and then pay the debt to the creditor. This option is a good choice for someone who doesn’t have the ability to pay the full debt that they owe, but can make some kind of payment. It is a less harmful solution than bankruptcy and a good way to eliminate credit card debt legally.
Whichever solution seems like a good one for your situation, it’s important to do your homework and find a debt negotiator with a good reputation. With the right debt relief solution and the right negotiator, you will be on your way to a brighter stress free future.
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