Credit Card Debt Negotiation and Settlement – Your Really Smart Move to Avoid Bankruptcy
Considering whether bankruptcy or debt settlement is a better option? No one wants to default on debts, but sometimes it may seem like there is no other option. Unfortunately, iva the aftermath of declaring bankruptcy can involve living with a credit disaster that will follow a person around for years. Read on for how to use debt negotiation and settlement to avoid going bankrupt.
A Counselor Can Help
Contacting a debt settlement counselor can help a person worried about going bankrupt explore other options. With a good financial counselor, a person who is worried about bills they cannot pay can explore alternatives to defaulting on their obligations. A good financial counselor may be able to help someone in danger of default explore settling debts, reorganizing debt payment plans, and sometimes consolidating what is left in order to create a payment plan that is not out of reach.
Credit Card Negotiation Needs A Professional
When negotiating large amounts of unsecured debt, like the balances left on credit cards with rising interest payments, it is important to get help from a professional negotiator. While anyone can work directly with a credit card company to reduce debt and settle without defaulting, the right professional negotiator can usually get much better results. Sometimes all it takes to make a bill payable again is a lower interest rate or reduction of fees, and sometimes a card can be settled for a fraction of what was originally owed.
Settlement Is A Good Option
When credit card debt is settled, the person who owes money can frequently end up paying less than half of what was originally owed. While this type of settlement may have a small credit hit for the immediate future, it has a much smaller and shorter term effect than the credit score devastation caused by going bankrupt. With a few years of solid financial decisions after settling, a person who was once in trouble sends the message in their credit history that they are both willing and able to pay off obligations and fight to avoid default.