How to legally Reduce Credit Card Debt

If you want to stop your credit card debt right in its tracks, one of your best options is to get some of your credit card debt removed. You can do this by making use of a procedure known as settlement. There are two main ways for you to legally get some of your credit card debt removed. These two methods and their pros and cons are outlined below.

• Method #1 - Negotiate Yourself

You can't just call up those credit card companies you owe money to and say "I'd like to pay $5,000 less than what I actually owe." The end result might get that $5,000 or more forgiven, but the entire process isn't as easy as it sounds. Not all creditors agree to settlements and not all are ideal candidates for it. What you need to do is convince your creditors that you cannot pay your bills without a settlement (show them you are in financial distress). Then, you must negotiate with them to get a favorable reduction in debt.

The main advantage to opting to handle the debt relief negotiations yourself is that you save money on fees. A professional debt relief company will cost you money. The main disadvantage is the lack of great results. Many consumers are literally desperate to owe less, even just a few thousand dollars less. This is good, but you could get a higher percentage of your debt eliminated if you play your cards right.

• Method #2 - Let a Pro Negotiate for You

If you feel that you are a good candidate for settlement, you should be accepted into a debt relief program. When this happens, a professional contacts your creditors and handles all the negotiations. Moreover, since these are professional settlers, you should see a higher amount of your debt reduced or forgiven!

The main advantage of opting to enroll in a debt relief program is that they do most of the work for you; they handle creditor negotiations. Relief from your debt is also easier because you get a set plan in place; you will be instructed how much money to pay them and follow this until your bills are paid. The main disadvantage is the fees associated with seeking professional relief. The good news is that these fees shouldn't be too high and your percentage of debt that gets eliminated might be so high that you still save money!

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link: Free Debt Advice