Credit Card Debt Settlement – Why Credit Card Companies Are In Financial Trouble And How Consumers Can Benefit
Coming off one of the worst recessions in American history there are more consumers deeply in credit card debt than ever before. There are more consumers and small businesses on the verge of bankruptcy and delinquent accounts continue to rise. Left with no other option, credit card companies are engaging in credit card debt settlement deals like never before. Those who have over $10,000 in credit card debt and are experiencing a legitimate financial hardship could literally have their balances cut in half.
For nearly two decades credit card companies irresponsibly granted unlimited credit to consumers and small businesses. They were more than willing to collect high interest rates and put American consumers further in debt. Well, this practice finally caught up to them and many credit card companies are struggling to maintain healthy balance sheets. They along with the American public are sinking further into debt.
So why would credit card companies and other creditors of unsecured debt engage in the credit card debt settlement process? The answer is simple. If consumers were to be granted Ch. 7 bankruptcy they know they would likely receive none of their money back. With a credit card debt settlement they are able to collect at least some of their money back (typically 50%) and avoid taking a complete loss.
With delinquent accounts continuously rising at alarming levels, credit card companies know that it is in their best financial interest to engage in a debt settlement process. 50% of their money back is better than nothing.
On July 28th 2010 new laws were passed regarding the credit card debt settlement process. It is now illegal for debt settlement companies to collect upfront fees. If they don’t settle the debts the consumers don’t pay a dime. The process therefore is more legitimate than ever and credit card companies are willing to make deals.
Consumers with over $10,000 in unsecured debt should at least consider a debt settlement. There are also other debt relief options such as credit counseling and debt consolidation. Consumers should fully understand all their options before making a decision.
Visit FreeDebtReductionHelp.com or Call: 800-933-8332 to speak with a debt relief specialist that can go over all the debt relief options for free.
- Contact Information
- Michael Smith
- United Debt Associates
- Contact via E-mail
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