Not all your credit card debt will be wiped clean. Instead, you get a proportion of it eliminated ; essentially, your debt is reduced to an amount that's more reasonable for you. The share of elimination can alter. Roughly, people who have more than $10,000 in card debt see a decrease in the amount they owe by as much as 60%! While it might be pleasant to have no debt at all, remember a reduced amount is better to pay.
Debt settlement does have some negative effects associated with it. That main consequence is the low credit history you may get. It'll appear on your credit score that you settled with your credit card firms. While this may negatively impact you credit most settlements only affect a credit history for around 1 to 2 years. This is clearly a better alternative than bankruptcy which stays on your credit history for 7 years on average.
If you have over $10,000 in unsecured debt it would be wise to seek professional help.
Credit Card Debt Settlements – Why A Debt Settlement Is Much Better Than Bankruptcy
Posted on December 3, 2009
Filed Under Finance | Leave a Comment
Are you dealing with a massive amount of credit card debt? If this is the case you may have heard that you can eliminate a share of your debt with a technique that is often known as debt settlement. Yes you can, but you must also continue reading on for some things that every purchaser needs to understand about this debt settlement process.
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