Debt consolidation used to be easy for homeowners.  They could run up credit card debt and then just take out a second mortgages to consolidate their credit card debt and even get a tax deduction in the process. Millions of homeowners lost their home equity so debt consolidation options have vanished.  Debt settlement has become a more popular method of debt relief, mostly because everyone qualifies for debt settlement.  Consider carefully your options to eliminate credit card debt quickly and effectively.

Debt relief offers many benefits many consumers strapped with credit card debt.  Debt negotiation may not be for everyone, some people are better suited for bankruptcy and others do not have the correct mindset to go through this process.  The goal of a debt settlement is to obtain a debt settlement for you on the current debt amount you owe your creditor. So for example you may owe one particular creditor $10,000 so the goal of the negotiator would be to have you end up paying back say $6,000. The two main benefits of debt settlement are to save money on what you currently owe your creditors and to save time. By just paying the minimum payment with even a modest interest rate you will be looking at 30 or more years to become debt free, with a sound debt negotiation program you will be out of debt within 2-3 years or sooner depending on your current financial situation.

Even though there are great benefits but there are a few drawbacks with debt settlement because your credit can suffer. For starters your creditors will not be willing to negotiate a debt settlement at all if you are current with your monthly minimum payments. They would prefer you to stay on their credit treadmill for the next thirty years and pay them back over four times the balance in interest alone. So you must be late on your payments to put the creditors into a position where they will be willing to settle. Once you stop paying them the ball game changes completely and they will then be willing to talk in terms of negotiating a settlement.

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