The Debt Settlement Solution For Credit Card Debt

Credit card debt has become one of the most insidious problems affecting the average American citizen. On average, each American household carries around $ 8,000 in unsecured credit card debt. Many of these families lower their debt through debt settlement, which is often much more beneficial than bankruptcy or debt consolidation.

Credit Card Debt Settlement

If you pay the minimum balance on $ 8,000 at 10 percent interest, you will make payments on your debt for the next 12 years. In addition, you will end up paying nearly $ 3,000 in interest charges. Settling your debt, however, allows you to walk away clean in as little as one year. Debt settlement also allows you to pay just a fraction of your debt – sometimes as little as 40 percent.
Bankruptcy as Debt Settlement Solution

Bankruptcy may seem like an attractive option, as it allows you to simply walk away from the bulk of your debt. But new laws passed by Congress in 2005 require you to pass a means test before filing bankruptcy. If the test shows you may be able to repay your debts, you are ineligible for bankruptcy.

Debt Consolidation as Debt Settlement Solution

Debt consolidation is also popular for those deep in debt. Unlike bankruptcy or debt settlement, debt consolidation requires getting a new loan to pay off the inheritance of what you owe. These loans can be secured or unsecured, which can affect the interest rate the loan carries. Either way, the benefit of consolidated debt is convenience, not debt reduction. These loans often take as long as credit cards to repay.

Debt Settlement Solutions for Credit Card Debt

Credit card debt can be terrifying. It can keep you up at night, and it can steal enjoyment from your family time. Settling your debt helps you regain serenity in a short amount of time with less hassle than debt consolidation or bankruptcy. Debt settlement is a dynamic solution to thousands of Americans' problem of gargantuan credit card debt.

* Debt settlement does not require a new loan

* Anyone with a large burden of debt qualifies

* Settled debts can be paid in a short amount of time

Source by Robert A Johnson

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