At this point, many individuals might feel worried and uncomfortable. They are receiving calls, letters and other items encouraging payment on the debt. The problem is that it might not be possible to manage the full payment.
(prHWY.com) March 2, 2012 - Philadelphia, IL -- When people think of getting relief from credit card debt, the ideas that come to mind are not always pleasant. Bankruptcy is usually a last resort and many want to avoid going so far, but consolidation might not always be enough to manage the situation. The question of whether negotiation is an option also comes to mind, but due to confusion about how the process works it can feel uncomfortable.
Defaulted Credit Cards
The use of
credit card debt relief begins after it is no longer possible to make payments on the debt. Credit card debts are usually held by the original creditor until the individual does not pay the debt for a few months. At the point the debt is considered a default, it is given to collection companies rather than held by the original lender.
At this point, many individuals might feel worried and uncomfortable. They are receiving calls, letters and other items encouraging payment on the debt. The problem is that it might not be possible to manage the full payment. Fortunately, creditors are often willing to negotiate for a lower cost when a credit card goes into default.
Negotiation Process
Obtaining credit card
debt reduction often requires going through a negotiation process. The basic negotiation starts with offering a lump sum of cash for the creditor to forgive the remaining debt. This means that the borrower must have the ability to raise the offered cash or have the cash available for a lump sum payment. After determining the maximum payment amount, the individual makes an offer to pay a lower amount to leave some room for negotiation.
The creditor is often willing to work with the individual at this point and will usually come back with a counter-offer. If they refuse outright, it might be necessary to get a professional settlement company involved in the negotiation process because they might not be willing to work directly with the borrower. If the creditor issues a counter-offer, it is then up to the individual to accept or send backing another counter-offer.
Though it might take time to negotiate debts for a lower cost, it is possible if the credit cards have gotten out of control and it is not possible to pay the full amount. While the negotiation process can take a few months to year, the end result is completely eliminating the debt for a lower cost.
See more related post:
Finding A Way Out of Serious Credit Card Debt
CONTACT INFORMATION
LEANNA HARWOOD
888-321-3809
info@hamiltondebtrelief.com
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