Plastic money has led many of us into a debt trap as we tend to spend more than what we would have otherwise. Once into this debt trap, it is difficult to get out of it without filing for bankruptcy. However, there are legal tips for debt relief and debt management that one can avail of in order to clear off the card debts. When one takes the legal route it becomes easier not only to clear off the debt without filing for bankruptcy but also in maintaining the credit rating as well as the score.
There are many such relief programs. Once such program is the debt negotiation, wherein one can avail the services of a debt negotiator who would help in reducing the card dues as well as the penalty charges on the card. They act as a buffer between the customers and the bank. This way the customers are free of worry as the negotiator deals with the harrowing phone calls and letters from the creditors. The negotiator negotiates on your behalf in order to get the debt amount reduced to reasonable rates and also in order to get a reasonable time frame. Negotiations through these professional channels are always helpful in getting a better deal as the negotiator is fully aware of the banking procedures, surcharges, etc. This knowledge certainly helps in getting a better deal.
However, one has to exercise caution while choosing professional advice from these companies. Check the legal fees before choosing a professional from these companies and see if the fees are viable. It is always better to be very open and honest with the negotiator, so he/she can work out a better deal for you. It would also help to be cautious with regard to payments and make payments once the deal is over rather than paying upfront and then going after them.
Consolidation loan is another option where the card debt is consolidated, wherein you have the option of balance transfer or paying up the old debts. While choosing this option, choose the card which has low interest rates so that the creditor can pay off all the old debts on all the other cards. While doing so, the amount due will get transferred to this particular card and would help in getting a settlement from the creditor.
With over 10K in unsecured debt, creditors are willing to negotiate as debt settlement seems to have become a viable option instead of filing for bankruptcy.