If you owe way more than you can afford to your credit card issuer, the time is ripe to seek debt negotiation advice to bail you out of financial trouble.
In order to eliminate unsecure debt you will need all the help you can get and one tactic that will help you save a lot of money is to threaten the issuer that you are about to declare bankruptcy which will set off alarm bells.
This is because when it comes to a bankruptcy credit card firms and other creditors cannot hope to see a penny of what they are owed ever.
This is why they are willing to go along with you if you are seeking debt negotiation advice and work toward a settlement, where there is hope of the issuer getting at least some of the money back.
As it is, credit card firms have been stung by defaults and bankruptcies on the part of consumers which meant their profits have steadily gone downhill.
It is also a reason that the government had to step in and provide them with stimulus money in order to cushion the financial blow.
No empty threat You would be surprised at the alacrity with which issuers will react once they find out you may be heading for bankruptcy but are seeking debt negotiation advice, With a settlement, through negotiation between the settlement firm and the issuer, the amounts you owe will be significantly reduced as credit card firms are quick to slash their interest rates and even waive fees and charges.
More often than not they will also give you more time to pay back the reduced amount which allows you to get your finances better organized and start thinking about saving again.
Bankruptcy can ruin an individual's credit, job and business prospects and is a path usually taken as a last resort to ensure debtors do not have to be paid back.
But with a settlement, creditors get some of their money back and as a debtor you will be able to pay back the amounts you owe honorably.
Your credit history may be affected but it will recover in a matter of a few years.