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4 Facts About Credit Card Debt Relief

4 Facts About Credit Card Debt Relief

Fact #1: What is Credit Card Debt Relief?

The process of Credit Card Debt Relief, which is commonly defined as ‘Credit Card Debt Adjustment’ is the financial procedure of structuring, developing, or organizing a strategic debt management plan fashioned in order to allow individual debtors the opportunity to achieve debt relief through the creation of supplemental activities and requirements concerning their outstanding debts; as its name suggests, the Credit Card Debt Relief procedure allows eligible debtors the opportunities to undertake repayment or relief efforts structured in order to meet their financial needs and abilities. 

Fact #2: Warning Signs of Fraudulent Credit Card Debt Relief Programs


Credit Card Debt Relief through the undertaking of a credit card debt settlement allows an individual debtor to furnish a decreased, or fractioned amount of debt owed in lieu of the full amount owed; however, the stipulations latent within this type of settlement-based Credit Card Debt Relief may required individuals to undertake repayment at all at once in a lump sum. 
However, fraudulent credit card debt relief programs exist; oftentimes, they may seem too good to be true with regard to their advertised offers:
The Credit Card Debt Relief ‘industry standard’ suggests that debtors be wary of credit card debt relief programs advertising upwards of a 70% reduction; such offers are considered to be largely fraudulent
While certain Credit Card Debt Relief or Adjustment programs making these claims may be legitimate, individuals are encouraged to seek professional counsel prior to engaging in any credit card debt relief program or opportunity


Fact #3: Bankruptcy can be a Choice

Credit Card Debt Relief through bankruptcy allows individual debtor to achieve debt relief through the filing of a bankruptcy claim; bankruptcy is defined as a financial stasis within which individuals have found themselves to be financially insoluble with regard to the outstanding debt in their possession. Although this measure of Credit Card Debt Relief may not be the most ideal in certain circumstances, subsequent to the undertaking of legal or financial counsel, an individual debtor may discover this type of Credit Card Debt Relief to be the most sensible and effective relating to their respective debts incurred.
Fact #4: Credit Card Debt Relief Settlements Payment Plans


While many Credit Card Debt Relief programs may require the furnishing of a lump sum payment considered to be reduced with regard to the original total amount required for repayment, the following payment schedules also exist:
Credit Card Debt Relief through a Standard Debt Settlement program provides for a standardized payment required for furnishing on a monthly basis on behalf of the individual debtor concerning the lending institution
Credit Card Debt Relief through an Extended Debt Settlement allows for an extension of the repayment period concerning the life of the loan itself the time of the loan, which typically results in the lessening of the required, scheduled repayment amount
Credit Card Debt Relief through a Graduated Debt Settlement provides for a variable repayment amount with regard to life of a defaulted loan
Credit Card Debt Relief through a Prorated Debt Settlement allows for debtors wages, earning, and income to serve as a determinant factor with regard to the establishment of repayment amounts

A ‘How-To’ Guide for Credit Card Debt Settlement

A ‘How-To’ Guide for Credit Card Debt Settlement

What is Credit Card Debt Settlement?

Credit Card Debt Settlement is a financial measure undertaken by both the individual in possession of credit debt – known as the ‘debtor’, and the institution or entity in ownership of the outstanding debt – known as the ‘lender’ or ‘the debt owner’; upon enacting a credit card debt settlement, the debtor will have the opportunity to undertake the satisfaction of a reduced amount required for the satisfaction of the credit card debt. A credit card debt settlement must render approval from botht the owner of the debt, as well as the debtor.
Credit Card Debt Settlement Repayment

The following are a variety of repayment options for which an individual debtor may be eligible subsequent to undertaking a credit card debt settlement:
A Standard Credit Card Debt Settlement Repayment Schedule provides for a standardized payment required for furnishing on a monthly basis on behalf of the individual debtor concerning the lending institution
An Extended Credit Card Debt Settlement Repayment Schedule allows for an extension of the repayment period concerning the life of the loan itself the time of the loan, which typically results in the lessening of the required, scheduled repayment amount
A Graduated Credit Card Debt Settlement Repayment Schedule provides for a variable repayment amount with regard to life of a defaulted loan
A Prorated Credit Card Debt Settlement Repayment Schedule allows for debtors wages, earning, and income to serve as a determinant factor with regard to the establishment of repayment amounts
A Lump Sum Credit Card Debt Settlement Repayment Schedule allows the debtor to furnish a reduced amount for repayment in lieu of the full amount owed; however, this type of Debt Settlement plan may require the debtor to furnish the adjust – albeit decreased rate – all at once

Assessing Your Credit Rating through Credit Card Debt Repayment

Prior to engaging in – or agreeing upon a credit card debt settlement plan, you are encouraged to undertake legal counsel or certified financial assistance with regard to not only analyzing your current credit rating, but also the affect that participation in a credit card debt settlement plan will have on the state of your individual credit rating:
Typically, credit ratings classified as ‘Excellent’ or ‘Good’ yield the most attractive interest and annual percentage rates (APR) ranging between 2% and 5%; these credit cards commonly include amongst the largest credit limits, and are largely unsecured in nature
Typically, credit ratings classified as ‘Average’ or ‘Fair’ yield the most attractive interest and annual percentage rates (APR) ranging between 8% and 20%; these credit cards commonly include median credit limits, and may vary between secured or unsecured in nature
Typically, credit ratings classified as ‘Poor’ or ‘Bad’ yield the most attractive interest and annual percentage rates (APR) ranging between 10% and upwards of 25%; these types of credit cards retain comparably low credit limits, and are largely secured in nature, which may require them to be issued contingent upon surety deposits or a pre-payment plan.