Legitimate Debt Settlement Companies - How Do They Work? - Are You Eligible For Debt Settlement
Credit card debt has become the most discussed subject in the US.
The consumer culture in the US has encouraged people to thrive on a consumer economy.
Credits have provided the means to buy now and pay later.
The Credit card companies always wanted it that way.
Their game plan was to get users used to buying stuff on credit.
After getting them in the debt game, the credit companies want to keep the users in debt for ever.
As long as the creditors are in a position to pay the debt back this plan will work.
Imagine a situation when all card users are down with more than $10,000 or more debt.
Most of them fail to pay up and file for bankruptcy.
The exempt assets of these people will be very limited.
Thus card companies will recover only a fraction of the amount they have lent out to the users.
This will result in huge losses for the Credit card companies.
They will not be able to recover from this crisis.
Credit companies are making their best efforts to avoid this scenario.
They are looking forward for debt settlements instead to avoid their users filing en-masse for bankruptcy.
In a debt settlement the debtors negotiate with the Creditors and arrive at a one time payment to be made to clear the debt.
The negotiations could be held directly by the users or through a debt settlement company.
Once the negotiations are completed the user is required to pay the one time settlement amount in lump sum.
Only those users who have more than $10,000 in Credit card debt are eligible for a debt settlement.
This is the only method by which you can legally eliminate debt without paying it back.
It has no major disadvantages like bankruptcy and will also not do very severe harm to your credit.
The consumer culture in the US has encouraged people to thrive on a consumer economy.
Credits have provided the means to buy now and pay later.
The Credit card companies always wanted it that way.
Their game plan was to get users used to buying stuff on credit.
After getting them in the debt game, the credit companies want to keep the users in debt for ever.
As long as the creditors are in a position to pay the debt back this plan will work.
Imagine a situation when all card users are down with more than $10,000 or more debt.
Most of them fail to pay up and file for bankruptcy.
The exempt assets of these people will be very limited.
Thus card companies will recover only a fraction of the amount they have lent out to the users.
This will result in huge losses for the Credit card companies.
They will not be able to recover from this crisis.
Credit companies are making their best efforts to avoid this scenario.
They are looking forward for debt settlements instead to avoid their users filing en-masse for bankruptcy.
In a debt settlement the debtors negotiate with the Creditors and arrive at a one time payment to be made to clear the debt.
The negotiations could be held directly by the users or through a debt settlement company.
Once the negotiations are completed the user is required to pay the one time settlement amount in lump sum.
Only those users who have more than $10,000 in Credit card debt are eligible for a debt settlement.
This is the only method by which you can legally eliminate debt without paying it back.
It has no major disadvantages like bankruptcy and will also not do very severe harm to your credit.
