Credit Card Reduction – Utilizing Settlement to Reduce Credit Card Debt

Credit Card Reduction – Utilizing Settlement to Reduce Credit Card Debt

When you are struggling at the brink of bankruptcy, you would probably certify the person as insane if he or she advises you to get out of debt in a span of months. With a credit card debt in excess of a hundred thousand dollars and a mortgage on your house and other expenses running nonstop, where is the question of even thinking of a getting out of debt.

However, it is true that you can get out of all your debts in a span of just a few months. How? All you have to do is enter into negotiations with your lenders and convince your lender to provide a settlement deal. This means that you can bring down your debt by as much as fifty to seventy percent without repaying even a single cent. That is exactly the break that you need to get out of your debt.

Well, if you owe a hundred thousand dollars to your credit card issuers, asking for a lump sum repayment of fifty thousand dollars is not going to work as well. This is where the current recession and the intervention of the government has made a huge difference. Credit card issuers are prepared to offer installment facility ranging from twenty four to thirty six months to repay the balance amount.

Repaying fifty thousand dollars in a span of three years is not an easy task. However, the fact that you have brought down your debt by such a significant percentage and that you have extra cash in your hand will definitely work in your favor.

You must keep in mind that debts cause mental stress as well. If the mental stress is removed, you will definitely find it easier to overcome your problems. That is exactly what a debt negotiation deal does.

Once you have brought down your debts by a significant percentage, you need to focus on a prompt repayment. You will be depositing the money into the escrow account and the same shall be transferred to the lender once the settlement amount has been reached.

Needless to say, your deposit into the escrow account will determine how quickly you will get out of debt. If you sell an asset and use the money to bring down your debt to zero, then you can actually end to get rid of all your loan problems in a span of six to eight months.

Otherwise, you should be prepared to spend at least twelve to eighteen months to overcome the problem.