Like all other business the Credit card industry has its own set of rules and parameters. Credit card industry has traditionally thrived on offering debt at very high rates of interest to the users. These users were naïve enough to believe that they had some kind of power in the Credit cards. They kept on using their cards recklessly and got into massive debt. Only during payback time they realized that they were in deep trouble.
Most consumers are in a problem and are looking for debt relief solutions. Debt relief solutions come in various forms. You can go in for simple debt counseling or debt consolidation. Larger debts will require professional treatment. You can go in for a debt settlement or bankruptcy. However you need to take a much deliberated decision before making the choice.
This is a dilemma faced by many Credit card users. You first need to understand the gamut of debt settlements and how they work. Settlements are actually arrived at after holding negotiations with your creditors. The creditors are more than eager to negotiate with you. Now, why any sane Creditors should negotiate as to what you owe them legally? There is a reason to this. The creditors are actually worried about loosing their money if they do not negotiate. If all the users file for bankruptcy the Credit card companies will get nothing. This will break them financially. It will damage the Credit score of the users. However the Credit card companies would like to avoid this serious damage. They are willing to waive up to 50 percent of the debt in exchange of the balance 50 percent in a single one time payment.
When compared to bankruptcy, debt settlement is a very neat arrangement. It will hurt your Credit but not as much as bankruptcy. Filing bankruptcy will leave you without getting credit for almost a decade. Therefore debt settlements are best for you.
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