Too Much Credit Card Debt? - How To Consolidate And Then Eliminate Credit Card Debt
We all have enjoyed the usage of the card at all points of time
. An easy replacement of cash and the instrument can be used anytime anywhere. All of us have enjoyed the usage of the card but we have also accumulated a lot of problems and debt for ourselves. Non payments have accumulated a lot of unpaid bills, late payment charges and interest which needs to be paid along with the accumulated unpaid amount. Delinquency with unsecured debt is not just one person's problem it is the problem of the economy today. People and institutions both are filing bankruptcy as the money is in short supply and people are not been able to make payments.
To help the falling financial giants the government gave help to them in the form of packages which could help them in the revival process. The companies after offsetting losses initially started on their way to collect more and more money from the delinquent customers by giving attractive offers which would help the customers to pay back the debtors. The question arises is that is just consolidation enough to eliminate card debt? The answer is no and we all know that.
Any customer in debt makes his way to a debt relief company just with the thought process in mind to come out of the current situation. The consolidation company follows the following methodology with the customer.
1.The counsellor listens carefully to the customer's problem and lists down carefully the amount of debt the customer has and notes down the details of the agreement he has signed up with the card company.
2.The counsellor now puts the customer on a program in which he is asked not to collect any further debt from the creditors.
3.The customer also lists down his sources of income and is asked to enhance it by so that he can pay back his debt effectively.
4.Once the customer stops accumulating debt the debt experts set up a meeting with the creditors in which they brief them that the customer is looking forward to filing a bankruptcy in case if he is not helped with the consolidation process.
5.The companies are well aware of the fact that they would not be liable for any kind of payment if the customer gets bankrupt.
6.A fair deal is settled in which the customer gets his debt bill reduced and gets a marginal reduction on his interest rate of payment.
7.The customer every month makes one single cheque payment to the consolidation company and the creditors are further paid by the consolidation company.
Over a period of time the customer slowly and steadily gets rid of the debt by making continuous payments and becomes completely debt free.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified. They are free to use and offer helpful debt relief advice.