Many credit card debt solutions are available to help the people who are trapped in the vicious circle of debts. Debts can be secured or unsecured. Secured debts are issued against some security i.e. assets like house or car whereas an unsecured debt is not issued against any security.
The debts must be evaluated if some relief option is to be opted for getting rid of them. As we all know that various credit card debt solutions are present to solve the liability issue of people therefore, it is very rare case that a creditor sues any of his consumer for the recovery of the loaned amount.
The most preferred credit card debt solutions include debt settlement and bankruptcy. According to the expert’s opinion, debt settlement is the best option to solve the problem of liabilities. Settlement deals can either be formal or informal ones. Informal deals involve a written or verbal agreement between the lender and the borrower including details of how much money is to be paid to the creditor and at what time this payment must be made. For formal deals, a person has to be aware of the legal formalities.
On the other hand if we talk about bankruptcy then it is worth mentioning here that it is not an appropriate way to get rid of the loans. This is because the long run consequences of this option are really disastrous for the person who is opting for this option. If a person becomes a defaulter, he gets ineligible to take any loan for the fulfillment of the financial obligations for the next many years. Creditors also don’t get any money if any of their clients become bankrupt.
Debt settlement is that option which grants 50 to 60% elimination in the amount of the debts along with an opportunity to pay the remaining amount in easy monthly installments or in a lump sum amount as per desire.
Therefore, among the credit card debt solutions, debt settlement is the debt relief option that makes the most financial sense for a debtor.