Feel like your drowning in debt? Are you paying loan payments with your credit card? Racking up debt to buy food, pay bills?
With the unemployment rates going up every day so is people’s debt. With the current recession we are faced with thousands of people are trapped. Most of these people are in way too deep and basically will never recover.
Credit cards have become a thing of norm. It use to be that only people that were employed with good paying jobs were able to get one. That is simply not that case now. Credit card companies are providing cards to students, part-time workers, and even the unemployed. This results in numerous debts that can not be paid back because the card holders never really had the ability from the start. This not only is bad for the customer, but is bad for the banks and the economy as a whole.
Credit card debt settlement was never even thought of a few years back. People either paid their bills or claimed bankruptcy. There was really no in between with this regard. Now there are agencies out there that will essentially buy your debt. They will settle on a percentage of what you owe to the credit card company or other creditors. And then you will be required to pay the new amount to them.
These agencies will negotiate your debt amount with your creditors. Perhaps you owe $50,000 they will converse with the creditor and buy your debt from them for say $30,000. You will then have option to pay the agency a lump sum of $30,000 plus fees, or they will set you up with a payment plan. Often much lower than what you were paying prior.
It is of the utmost importance that if you are going this route that you plan carefully. There are some shady companies out there that will charge you a lot of money up front to buy your debt, and then they end up charging you more interest than the other creditors in order to get the money back from you.
Once you have found a good company, they will discuss with you what options you have. They will also provide you with a very decent settlement usually 50-60% less than what you previously were paying. It won’t be long until you are free of debt and feeling much better about your situation.
