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April, 2011:

Manage Debt Either By Self Help or By Professional Guide

From our childhood we have been accustomed to our most infamous ‘getting and spending’ spree, a typical habit nurtured in American. From school days we have grown up with an education of ‘buy now, pay later’ attitude. Now, we are beginning to feel its telling effect both personally and socially. On the average now every American citizen owes huge personal debt. It is unfortunate that we never learned an efficient (more…)

Debt Negotiation Can Equal Debt Reduction And Canceled

Are you faced with an ever increasing amount of personal or business debt with no end in sight?

Bankruptcy is an option but it is not one to be taken lightly. The best option is to first look into some type of debt negotiation to drastically reduce and even cancel some of your debt.

Did you even know there was a process to eliminate your credit card obligation with self-negotiation? Being financially free by using self-negotiation will seem daunting and difficult because it requires that you work through the process. Thankfully, the procedure for financial relief can be simplified by finding someone or some organization to guide you through the process. One step in the process is to contact your creditors and credit card companies to explain that you are facing significant hardship and are unable to pay. You need them to restructure, eliminate or reduce your debt load in order to avoid bankruptcy. This can be done via a certified letter so that you have proof it was sent and received.

Why would they agree to this?

If you are forced to file for bankruptcy you unfortunately will completely liquidate your obligations to them and so they will receive no money at all. It is better for them to settle for 50% or even 30% of the balance that you owe. It is best to provide as much information about your current situation as possible. They need to understand the seriousness of your current situation and that you are not simply trying to get out of your responsibility to repay your debts. Complete elimination of your debts is what many people try to aim for but is usually not possible. The typical reduction is by 50 or 60 percent.

Where can I turn for help?

Debt Canceled and other web sites can provide information and sample letters to use to contact your creditors and begin the process of debt relief that you are looking for.  You will find a number of companies that will try to charge large fees to guide you through the process.  Unfortunately, many of these companies are not very good at what they do.  They can ruin your credit rating and end up adding to your actual debt load with their fees and the additional late fees generated by your creditors.

Who can I trust?

The recent credit crisis has really opened up the floodgates with many new companies trying to profit from the painful debt loads that many individuals and businesses are facing.  It can be overwhelming trying to figure out who you can turn to and who you can trust.

It is important to really do your homework and research the available options.  You want references from people that the company has already helped.  It’s important to actually call and talk to these people and find out specific details good and bad as far as what they went through.  The time to find out that a company is not as good as you had hoped before you sign a contract with them and not after.

Don’t wait until your credit is damaged beyond repair or until you can no longer make even the minimum payments to take action.  Start the debt negotiation process as soon as you realize you’re at a point that your debt is beyond your control.

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