People who cannot pay their credit card debt are expecting bad things to happen. They need to understand what their alternatives are and what the true reality of each is including debt collection. Dealing with debt collectors is not as bad as it seems, and could be the best solution to eliminate credit card debt.
Of the several choices available, non-payment is THE best choice when you cannot pay credit card debt. Consider the choices:
Non-payment with No Resistance Many individuals are convinced they are helpless and cannot do anything about their financial problems. This group does not respond to debt collection notices or court summonses and each is put at risk by exactly what they may fear the most.
Bankruptcy For obvious reasons bankruptcy is the worst alternative if a consumer only has unsecured credit card debt.
Lump Sum Debt Settlement/Negotiation This is actually nonpayment, but those payments are given to a debt settlement firm to accumulate money for a settlement. Those firms take at least $1500 for each $10,000 of debt off the top of that fund, according to the Credit Card Debt Survival Guide. 1099-C tax forms are issued by the credit card bank in the unsettled balance.
Credit Counseling or Debt Management with a Negotiated Reduced Payment Plan David Jones, the president of Association of Independent Consumer Credit Counseling Agencies has said, “The agencies affiliated with the AICCCA used to be able to help 20-25% of the people who came to them to avoid bankruptcy. Now they find they can only help about 7-8%.”
Non-payment by Resisting Debt Collectors The big, obvious benefit here is a lot of money is saved. According to the Credit Card Debt Survival Guide, you remain in control of your finances after properly educating yourself about the true powerless “ineffective” collection aspect of credit card companies, junk debt buyers, collection agencies and collection attorneys.
Debt collectors do not have to collect from 100 percent of debtors. 30 to 50 percent is more like the average. Debt collectors simply DO NOT collect from those who know how to resist them and eliminate credit card debt.
If you want to eliminate credit card debt, read about proven strategies for settling debts and handling debt collectors as well as collection attorneys in the Credit Card Debt Survival Guide. www.credit-card-debt-survival.com