Credit card debts have a way of spiraling out of control.
This is because of the complex interest charged on the amount payable.
Many people do not know how to manage their credit cards and end up with huge card bills without the ability to repay them.
In this situation they start contemplating bankruptcy in desperation.
But a bankruptcy stays on the individual's credit record for 10 years and on the public record forever.
At the same time a bankrupt person will find it impossible to get credit anywhere in the market.
He or she will also find it difficult and more expensive to get utilities and necessities like insurance.
Not only this, it may become difficult or even impossible for a bankrupt person to get employment or a place to live.
This is the reason a bankruptcy is best avoided especially when there is a way out of huge credit card debts in the form of debt settlement programs.
Under a debt settlement program a debtor can negotiate the total amount payable with the credit card company.
The card company will then assess the actual paying capacity of the debtor and agree upon a reduced amount payable.
The debtors can either pay off this amount as a lump sum or in monthly installments.
The creditors can also be persuaded to reduce the rate of interest on the negotiated amount payable.
Not only this, the creditors will usually also waive off the penalty charges.
If negotiated well the debt amount can be reduced to almost 50% of the original amount payable.
Another popular method of reducing the burden of unsecured debt is to consolidate various loans with a single low interest one.
On the other hand if you have some fixed assets to offer as collateral you can convert the unsecured credit card loan into a secured one.
This will bring down the interest rates drastically.
But if none of these two methods are suitable, you can opt for debt settlement, which will affect your credit scores adversely but the damage is easily repaired with the help of credit repair programs.
This is because of the complex interest charged on the amount payable.
Many people do not know how to manage their credit cards and end up with huge card bills without the ability to repay them.
In this situation they start contemplating bankruptcy in desperation.
But a bankruptcy stays on the individual's credit record for 10 years and on the public record forever.
At the same time a bankrupt person will find it impossible to get credit anywhere in the market.
He or she will also find it difficult and more expensive to get utilities and necessities like insurance.
Not only this, it may become difficult or even impossible for a bankrupt person to get employment or a place to live.
This is the reason a bankruptcy is best avoided especially when there is a way out of huge credit card debts in the form of debt settlement programs.
Under a debt settlement program a debtor can negotiate the total amount payable with the credit card company.
The card company will then assess the actual paying capacity of the debtor and agree upon a reduced amount payable.
The debtors can either pay off this amount as a lump sum or in monthly installments.
The creditors can also be persuaded to reduce the rate of interest on the negotiated amount payable.
Not only this, the creditors will usually also waive off the penalty charges.
If negotiated well the debt amount can be reduced to almost 50% of the original amount payable.
Another popular method of reducing the burden of unsecured debt is to consolidate various loans with a single low interest one.
On the other hand if you have some fixed assets to offer as collateral you can convert the unsecured credit card loan into a secured one.
This will bring down the interest rates drastically.
But if none of these two methods are suitable, you can opt for debt settlement, which will affect your credit scores adversely but the damage is easily repaired with the help of credit repair programs.