Eliminate Credit Card Debt Without Filing Bankruptcy – Protect Your Credit Score
January 17, 2011 6:00 am
Eliminate Credit Card Debt Without Filing Bankruptcy – Protect Your Credit Score In the current economic client staying on top of bills is very hard for most Americans. People who once had excellent credit now have poor credit ratings due to not being able to pay their bills on time. There are ways to improve your credit rating even in these hard times. Debt relief programs are a very viable option for repairing damage done to credit through late or nonexistent credit card payments and you can eliminate credit card debt without filing bankruptcy. A measure of relief from debt can be achieved by through the bankruptcy courts. However, the long term damage done to a credit file through bankruptcy makes it an ineffective way to solve credit problems for a lot of people. In fact, bankruptcy could possibly cause more problems such as being charged higher interest rates. In addition, bankruptcy information is available to the public, which can cause embarrassment to the debtor. Lastly, not all forms of bankruptcy clear up debt; some chapters of bankruptcy only reorganize debts and they still must be paid to creditors. The cycle of getting new loans to cover debts is also a futile attempt at improving credit. Most loans taken out for this purpose have high interest rates. Therefore, use of these loans to pay overdue credit cards puts people further in debt because they pay actually end up paying more money than the original debt. This strategy can also lower credit ratings because it can translate into too much debt on a credit report and is not the best way to eliminate credit card debt without filing bankruptcy. A debt relief plan has proven to be a very effective way to raise credit scores for thousands of people across the nation. Well qualified negotiators act as liaisons between creditors and debtors and achieve fair, affordable solutions to people with credit card debt. Debt relief or settlement agreements have been successful because creditors are willing to take concessions in order to collect on bad debts. These successful settlement agreements have resulted in removal of fees, lowered interest rates and balances cut to 50%. In most instances all unsecured debt is combined into one payment in line with the debtor’s budget. With this more affordable payment, timely payments are once again possible, leading to a much improved credit score. Other benefits from retaining help for debt relief include removal of negative information on credit reports and positive outcomes once accounts are settled or paid in full. It is well worth the time and effort to contact a professional to begin the process of helping you to eliminate credit card debt without filing bankruptcy and having the peace of mind that comes with the resolution of your credit woes. All you need to do is to get help and get out of debt now. Here is the #1 resource for eliminating credit card debt just click here to get out of debt now Article from articlesbase.com