One of the most effective, but still little-known solutions to eliminate unwanted debts from credit cards, is known as debt settlement. Often this is confused with the consolidation of debts. The negotiation of debt can result in the decrease of the interest rate, the Elimination of surcharges, and the liquidation of a debt with savings of 40% to 70% of the current balance. Debt negotiation is a concept that has been used over the past decades, but became very popular during the 1990s in the United States.UU., due to reforms in the laws governing the credit card companies. With the rise in rates of interest and surcharges by overdraft, accounts in arrears, etc., many consumers found themselves in economic problems.

The negotiation of debts arose from the increasing need to confront the increase in interest rates and the declarations of bankruptcy. The theory behind the negotiation of debt is that credit companies prefer to avoid that a client is declare bankruptcy. Thus, they receive a percentage of the debt immediately instead of possible payments for a period of 3-5 years, or in several cases none of what is owed. In this sense, the negotiation of debt should be both to the debtor, who save a percentage of your debt while avoiding having to declare bankruptcy, which the creditor, who avoids a procedure legal and insecure, and at the same time guarantees to recover a percentage of the total debt. In addition, the creditor can deduct any money not recovered from their income tax return, so you don’t actually lose nothing. In theory, anyone can negotiate their debts with creditors, but in reality the process is difficult and confusing. Many creditors in principle are not willing to negotiate and may resort to a number of very effective tactics to confuse the debtor and thus to recover the debt.

Why, there are companies that specialize in the negotiation of debt. They are responsible for the entire process of negotiation and generally give results far superior to those obtained individually by debtors. In conclusion, if you are in financial trouble due to their credit card debt, I recommend deeply investigate the negotiation of its debt with a trained professional. It could save much stress, problems, and thousands of dollars in debts. Scott Wallitsch is certified by the IAPDA as debt negotiator for DebtorSolution. He provides advice on deletion of debts (Debt Settlement and Debt Relief) to people who are seeking to become financially and economically independent.