This type of program requires a monthly payment, and also extends the payments of debts for a term of 5 years, which means that you will pay a lot of money in interest anyway. Finally, these programs do affect credit rating during the entire process of almost 5 years from now, it will resume the process of sanitation of lending activity. 3. Negotiation of a much more aggressive tactic that consolidate debt is debt negotiation with which it is negotiating an agreement with a company credit with end of that debt is settled by one amount less than the current balance of the card. A professional company of negotiation can achieve an average savings of 40-65%. This option may initially decrease much more than consolidation credit rating. While the initial effect is more severe, credit rating increases once the first agreement, which can be from four to six months.
In addition, this type of debt settlement programs last only 2-3 years, almost half of the time as a consolidation program and have a net saving much more significant than the consolidation. This brief summary of the options to confront the debts of credit card will serve to inform you about possible solutions that are to counteract effects caused by their credit card debts. However, the best thing you can do is access to professional financial advice to be able to understand the options in more depth. Only in this way, the financial independence you are looking for can be achieved. 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. Original author and source of the article