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When it comes to dealing with credit card debt there is not an option that works better than debt settlement. There is bankruptcy but not everyone qualifies for the best form which is Chapter 7 which discharges your debt. The new laws made the requirements for Chapter 7 much harder to reach. A lesser of two evils is to use debt settlement over bankruptcy to get out of debt. In the short article, I will give you some credit debt settlement advice to help you learn more about it and understand why you should use it instead of filing bankruptcy or using debt consolidation or other debt elimination methods.

So what exactly is debt settlement? Debt settlement comes up with you and your credit card company when you are several months behind on your credit card payments and the credit card company does not want to lose your account to bankruptcy. They would rather settle your debt for a percentage of what you owe right now than to go through a bankruptcy and wait some more years to get paid through the bankruptcy court.

With a debt settlement, you were able to settle your credit card debt for a fraction of what you owe, usually 40% to 60% been the norm. This would be equivalent to cutting your credit card monthly payments in half. When you do this it's easy to get out of card debt. That’s what makes this one of the most powerful credit debt cures you can use.

You do not worry about the interest rates or lowering your interest rates because when you are several months behind on your credit cards you will get the default rates of 25 to 30% or more.

I would suggest refraining from checking your credit score when you're in the middle of debt settlement because you will have noticed it dropped significantly just as it would if you'd filed bankruptcy. Bankruptcy and debt settlement will both have detrimental effects on your credit score however, debt settlement is easier to recover from. Your bankruptcy filing information will be available in the public through the courthouse or online databases. With debt settlement, your credit score will still go down but it will not be a matter of public record. Your credit will be much easier to rebuild once you have no debt on the books.

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