If you’re currently deep in debt due to your inability to pay the balance on one or more consumer credit cards, then you’ve probably considered the act of negotiating directly with your creditors for a flat reduction in the amount you owe. Perhaps you’ve even envisioned calling them up and having an honest conversation with them about your issues with the hopes of reaching some sort of settlement. Of course, if you’re like most people then you’re probably quite nervous about contacting your creditors directly and you may even wonder whether credit card debt forgiveness even exists. Fortunately, it is possible to have a portion of your debt forgiven without claiming bankruptcy. The process is called a credit card debt forgiveness plan and as you will learn in the following article, there are several ways to go about getting your credit card debts reduced. Read on to learn more about bankruptcy and credit cards.
When it comes to debt forgiveness, there are really two types that matter – forgiveness through the traditional debt settlement process and forgiveness through the US Government’s Credit Card Debt Forgiveness Act. We’ll talk about the debt settlement process in a bit, but we’d like to take some time to discuss the federal government’s plan first. The plan was created in 2009 through President Obama and is meant to provide assistance to people with over $10,000 in bad debt. The assistance comes in the form of a flat reduction of up to 60% of the total amount owed. The program provides a huge benefit to borrowers that find themselves in over their heads and unable to address their out of control credit card balances. Plus, the program makes it possible for individuals to address their debt concerns without filing a bankruptcy claim – a process that comes with serious consequences.
Apart from the Credit Card Debt Forgiveness Act, the debt settlement process also allows borrowers to erase a large portion of their accumulated debt. Under a settlement, a borrower hires a settlement company to negotiate directly with their creditors for up to a 70% reduction in the amount they owe. While a borrower can certainly negotiate directly with their creditors without professional assistance, most people simply aren’t willing to go this route. Plus, a settlement company will generally be able to provide much better results than a debtor could otherwise achieve on their own.
Regardless of how you choose to address your credit card debt, it’s important to seek a reputable agency or attorney that can properly address your needs. Unfortunately, there are many debt settlement agencies out there that want nothing more than to take your money and run. Knowing this, it’s important to develop an understanding of how a particular firm operates before hiring them. An initial consultation can be a great way to meet a prospective attorney or debt settlement agency and is also a great time to inquire about their fee structure. Ideally, you want to pay a settlement agency only after they’ve generated results for you. The fees should amount to a percentage of the total amount of debt that they are able to negotiate.
For more information on the debt settlement process and how to search for a debt settlement attorney, please feel free to browse through our site. We have informative articles on a variety of debt relief options and also extensive information on how to claim bankruptcy.
Click on the following link to learn how to eliminate credit card debt without bankruptcy.
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