If you are looking for cancellation of credit card debt, you have something in common with millions of Americans. Even if you only kept your cards for emergencies, it seems like it has been one long financial emergency for the last few years. Fortunately, there is a way out of this emergency that does not require you to declare bankruptcy or go to court. Debt consolidation can help you just as it has helped thousands of others to settle with their credit card companies.
When monthly payments become too much to handle, people in debt often resort to paying off one card with their cash while they use another to make the purchases that they need to make just to get by. If you miss a payment, your interest rate will skyrocket, and your credit rating will suffer another dent. This leads to a debt spiral that often ends up in a bad way. It seems as if there is no way out of such a scenario unless you win the lottery or receive an inheritance.
This is why debt consolidation can seem like such a blessing. This solution does not involve another loan. Some lenders offer to help people in credit card debt by loaning them the money to pay off all of the debts at once. The drawback to this solution is that it does not actually eliminate debt, it just transfers the debt to one institution. While this solution may help lower payments, it is not really a final solution.
Lasting debt consolidation will erase your debts and help you to start over with a clean slate. The process usually involves a lowering of your monthly payment amounts, just like a debt consolidation loan. However, instead of putting you in debt with an uncertain end, this kind of debt consolidation can usually free you of all your unsecured debts within four years or less.
How It Works
If you think that you are a good candidate for this process, contact a debt adviser with a debt consolidation company to go over your alternatives. Some debts qualify for this sort of approach to debt cancellation. Other debts are under legal protections or are secured with collateral and do not make good candidates for this method of debt consolidation.
Debts that Qualify
• Medical bills
• Credit card debt
• Cash advance loans
• Business debts
There are other debts that can also be included in this list. Anything that has been turned over to collections is also a candidate for this sort of debt consolidation. Some debts are untouchable in these situations.
Debts that Do Not Qualify
• IRS debt
• Utility bills
• Auto Loans
• Student Loans
Any secured debt is usually considered off limits by a debt adviser with a debt consolidation company. The primary method of debt consolidation that these companies use involves a refusal to pay. This negotiation is very effective with unsecured debts. However, the terms of secured debts allow creditors to seize a debtor’s property under these conditions and remove much of the bargaining power of this technique.
When you contact a debt agent and explain your situation, he or she will let you know the possibilities that confront you. You will probably find that debt consolidation is your best choice, though sometimes people in special situations are advised to consider other options first. The next steps will require a lot of fortitude because they are very serious.
If you are accepted for a cancellation of credit card debt, the debt adviser will instruct you to stop making payments on the selected debts. Furthermore, you will be instructed to stop all communication with these entities and pass on all messages to your debt consolidator. From now on, this company will represent you in negotiations with your credit card companies.
As the months pass, you will make a single monthly payment to this company. In return for making negotiations, they will take a percentage of that payment as a fee. The rest will be deposited in an account with which they will bargain with your creditors. This payment is usually less than what you would have made in minimum payments before seeking debt consolidation.
As the size of the deposit grows, the debt consolidators will buy off your creditors with lump sums, one at a time. As each creditor accepts payment, they close your account and your credit rating begins to recover. Usually, by the end of four years or less, all of your debts have been erased.
If you are in this situation, fill out the form to begin cancellation of credit card debt now. You could be free from debt in less than four years.