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Thursday, 24-Nov-2011 06:49 Email | Share | | Bookmark
Why Waste Time With Debt Negotiations

Millions of Americans struggle every day to pay off their credit card debt. The amount of unsecured credit card debt that the average American has is so great, that many people in need of credit card debt relief turn to debt negotiators in order to get help with a credit card debt negotiation in an attempt to make their credit card debt more manageable.

While there is nothing wrong at all with seeking help if you need credit card debt relief – in fact it is a very responsible thing to do – people must be aware that entering into debt negotiations is not necessarily the safest option when it comes to getting help with debt. In order to understand why, we need to know exactly what the process of credit card debt negotiation is.

Credit card debt negotiation is an approach to debt reduction where you and your creditor agree on a reduced balance that will be treated as payment in full. Many times, debt negotiations are confused with debt consolidation, where the consumer would make their payments to the debt consolidator. With credit card debt negotiation, the consumer makes monthly payments to the debt negotiators where it is put into a special account. Your creditors will not receive any payment until they agree on a settlement with your debt negotiators. The purpose of these types of debt negotiations is to scare the creditor into settling your debt for less than the full amount. The downside to this is that most of the time, a creditor will simply begin collection procedures, which can result in them filing a lawsuit against you. This is how credit card debt negotiation can severely hurt your credit score, because your accounts will be reported as delinquent since the process relies on your not making any monthly payments to your creditors. If you do make payments, the creditors will refuse to enter into debt negotiations with you for a reduced balance. Once payments stop, your balances will continue to rise due to the addition of late fees and ongoing interest.

For some people, they feel that the pros outweigh the cons when it comes to debt negotiations. Other people are left wishing there was an easier way, one that wouldn’t hurt their credit score or leave the door open to even more harassing calls from creditors. This can be achieved with something called debt elimination.

A debt elimination program is not the same as debt negotiation, debt settlement, or debt management. It does exactly what it says: it eliminates your debt completely. Practically overnight, all of your debt can be erased like it was never there, and you will never have to make another payment again.

If you need to eliminate your debt and not simply manage it, consider debt elimination as the viable and legal choice. Visit credit card debt elimination for more info, or call 561-282-9476 for more information.


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