Tuesday, April 7, 2009

Consumer Credit Card Debt Relief Scams! [Part1]

I was in debt relief credit card only for the industry for 10 years now and have been in the financial sector for over 20 years. The point of this article is to give people a head on debt relief companies also known as debt settlement or debt negotiation companies. I'll give you the pros and cons of this process and what to watch during the interrogation of a company to help you out of debt. Before going, I want you to know that it will be a long article, and by the end of my goal is to help you understand how to negotiate the debt settlement process work, if you do not know not already, and I like you to understand the tactics of companies that do not really your interest at heart.

First, I want to clarify that the process of debt negotiation as a means of debt relief for consumers is not for everyone, some are better suited to bankruptcy and other n ' not have the enthusiasm to go through this process.

I would like you to first understand what debt negotiation and how it works. The objective of a debt negotiator is to obtain a settlement of the debt for you on the amount of debt you owe your creditor. For example, you May a creditor $ 10,000 goal of the negotiator would be to have to pay back say $ 6000. The two main advantages of going through this process are to save money on what you currently owe your creditors and save time. By just paying the minimum payment, even with a modest interest rate you are looking at 30 years or more to become debt with good debt negotiation program you will be out of debt in a period of 2 -- 3 years or sooner depending on your current financial situation.

Now, we must understand these are great benefits, but as with anything in life there are drawbacks, nothing is perfect and this process of debt relief for consumers is no different. To begin your creditors will not be willing to negotiate a settlement of the debt at all if you're up to date with your monthly minimum payments. They prefer you to stay on their mats credit for the next thirty years and to pay more than four times the balance in interest alone. Therefore the delay on payments to creditors in a situation where they would be willing to settle. Once you stop paying them the ball game changes completely and they will be ready to talk in terms of negotiating a settlement.

Please continue reading part 2

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