Credit Card Debt Consolidation - Relief and Management

Credit card debt consolidation is amongst the most sought after financial repair services and one of the most readily available financial services. Credit card debt consolidation can be done by an agency and it can also be done on your own.

Many people are unaware of both options. Furthermore many people are unaware of how easy it is to consolidate their own credit card debt. Many credit card debt consolidation agencies mislead consumers into believing that there is a mandated fee to consolidate their credit card debt with their creditors.

So what exactly is credit card debt consolidation?

Credit card debt consolidation is the process of re-organizing your debt into options that are more manageable for the debtor. During this process negotiations are made to reduce the debtors’ debt based on the amount of debt and the length of time the debt has gone unpaid.

There are many agencies that consolidate credit card debt for those who are unsure of how to do it or are unaware it can be done on their own.

Credit card consolidation agencies can negotiate and consolidate your debt for you, however they often times don’t advise clients of all of their options. Many clients are unaware of exactly how the consolidation and most importantly, the negotiation process works.

The primary driver of consumer deceit amongst credit card debt consolidation agencies is the requirements for credit card consolidation. Since credit card consolidation requires negotiation of your debts, this process is only available for debts that have been unpaid or are delinquent for six months or longer.

If your credit card debt has been unpaid or delinquent for less than this length of time, credit card consolidation agencies will often times require you to stop making payments on debts that do not meet that criteria.

For most people, it’s exciting to hear that reducing debt means you must stop making payments. However, this is adversely effective. If you have credit card debt you would like to consolidate the first thing you need to do is organize your debt between debt that has been delinquent for six months or longer and debt that is currently revolving. (still being paid)

You then need to add up your delinquent debt of six months or longer and multiply the total debt by 25%. 25% of your debt is the amount that most creditors will allow you to pay to relinquish the debt. If you work diligently with your creditors, they may be willing to remove your debt off of your credit report after it has been paid.

If you’re ready to and able to begin paying off delinquent and past due debts, be sure you do everything you can to remove the debt from your credit report. I’ve negotiated my debt so well with credit card companies, that I’ve been able to re-obtain credit cards with the same credit card companies that I previously had collections accounts with. That’s how clean I wiped my credit. It was so clean that my previous creditors had no idea that I had previous debts with them.

Many people are misled to believe this can only happen after “seven years” when your debts fall off of your credit. This process took place within two months of paying off my debts and it can work for you as well, it just requires you to negotiate with your creditors and to only accept yes for an answer. Yes to removing your debt!

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com