There are many credit card debt relief options but out of these, only 2 are the best.
One is debt consolidation and the other is debt settlement.
Debt In debt consolidation, you have to pay the whole debt amount but in the debt settlement you can pay up to 40%.
It all depends upon your amount of loan and the number of loans you have raised up.
First of all, we will talk about debt consolidation.
Most of the times, a person processes credit cards of more than one company.
According to a research, it is found that six out of ten people hold credit cards of many creditors.
It becomes difficult and complex when you pay installments to many companies.
Because all the companies have their own rules and policies regarding interest rates.
So in debt consolidation, all these debts are combines as one.
As they are combined as one, a secured loan is granted to the debt holder through which he pays back all the unsecured loans but the amount which is given to him to is now guaranteed by personal property like house, land etc.
Due to this, this is also called debt consolidation mortgage.
On the other hand, we have another credit card debt relief option which is Debt Settlement.
There are further two types of debt settlement one is called do-it debt settlement and the other hiring settlement company.
Both types have the same purpose that is, to make the debt amount less.
In the do-it method, the debtor himself goes to the creditor and asks for the reduction in the loan.
If the customer's past record is good then the creditor may reduce the liabilities.
In this way, you will not have to pay any services charges which you will have to pay if you get the services of a debt Settlement Company.
The settlement company negotiates itself with the creditor and presents the track record of a customer to the credit then tries its best in making the payable amount less.
But then you will have to pay the services charges if you get debt relief.
Both credit card debt relief options are affordable and easy to process.
It depends upon the customer that which technique is suitable to him to get rid of the amount of loan.