During this recession the options that the majority of Americans have when trying to get rid of credit card debt are extremely select. There are truly just three systems of debt relief that can be used for a consumer to realistically get out of debt without having to go down the route of a dreaded bankruptcy proceeding. And to be rather honest the majority of people have no idea what these options are that are available to them. There is a credit card debt settlement program, a consumer credit counseling program, and then the possibility of getting a secured debt consolation loan. One is not necessarily any better than any of the others however depending on a consumer’s personal monetary situation will resolve which will best suit somebody.

With a debt consolidation loan consumers can easily pay down all of their debts in one shot. However these loans aren’t so easy to obtain in this horrible economic collapse. To begin with you must have equity in your home and decent credit score to get the loan, and most consumers have neither as of the moment. One more issue to consider is that you are still in debt when doing this you are only transforming your low risk unsecured debt into a high risk debt secured by your home. Needless to say this can be rather dangerous.

Now the system of consumer credit counseling is one that has been rather popular over the last decade. The benefits of using a plan like this are that usually the credit card companies will lower your APR and then they will put you on a fixed payment. Just one monthly payment in which you will make every four weeks to the credit counseling company and they will disperse for you to the creditors. There is however a disadvantage to this program and that is you have a high chance of falling off the program, because most consumers can’t maintain the high payments to stay up to date with the plan.

A newer and more lucrative plan of credit card debt relief many folks have been utilizing is that of credit card debt settlement. This procedure lets people to kill two birds with one stone. Credit card debt settlement allows folks to save a lot of money and get rid of credit card debt extremely quickly. But the drawback to this option is that you must go past due on the payments in order for the credit card companies to be willing to settle you account. Once a debtor stops making the payments this puts the creditor into a negotiable position to where they will be now willing to negotiate a settlement. Many times the consumer will find themselves saving close 40-50% of what they currently owe out on their balances.

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