Reduce Credit Card Fees and Interest – How Debt Settlement Works
Credit cards are known to be a very attainable source of finances, but they also tend to accumulate debt very fast, if left unchecked. Many creditors are known to increase your interest if you are late even a couple of days on your payments, on top of the already high levels of interest that come with owning a credit card.
Reducing fees and interest is, however, a possibility, along with eliminating debt if you use the debt relief methods that have been created in order to help both debtors and creditors stay on top of their financial situation and avoid filing for bankruptcy. Settling is the most effective way of doing so, seen as it eliminates half your debt without having any major negative effects. It works by acting on the very source of a lot of peoples’ credit card debt – interest. Since this type of debt is unsecured, therefore there is no collateral for the creditor to take if you fail to pay your installments, the interest is very high and can easily accumulate in large amounts.
By negotiating with your creditor you can get him to eliminate forty to sixty percent of your debt, consisting of annual fees, payment penalties and a lot of accumulated interest, along with other costs. The reduced amount will never have to be paid by you, since it will most likely be covered by government funds called stimulus money. You will also get a significant decrease of your interest that will allow you to finish paying off the rest of your debt in about two or three years.
And the best thing is that the whole process in quite safe, with no major negative effects that you will have to worry about: it will not go on any temporary or permanent record, you will not be prevented from taking out loans or credit in the future and your credit score will also be left fairly untouched. All in all, settling is a great way to eliminate your credit card problems, along with your debt, so that you will never have to worry about it again.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies