Century Designs

Tens of thousands of consumers are being affected by credit card debt during these uncertain economic times. The country will pull out of this slump and rebound strongly as it always does. However, the strains of debt on those who are having a hard time making ends meet can weigh strong on the minds of many. Unfortunately, for many, Getting rid of unsecured debt with as little personal financial damage as possible is the only way to survive these hard times.

How can this be done?

Today, many people need debt relief. There are two very popular ways to eliminate the majority of debt. Both programs have their advantages and disadvantages and the one that is right for any individual will depend on their personal circumstances. There is much blame to be spread around. Many make the argument that the state of the economy in recession is to blame for the scenario. Credit card companies are frequently blamed for the historic rise in credit card debt today. And one could also make the argument that the consumers themselves need to shoulder much of if not most of the blame for credit card debt becoming the issue that it has. Regardless of the cause, the damage has been done and solutions to the problems are what many need now.

Two of the most widely used ways of unsecured debt settlement are available to consumers today. One of the most widely known debt relief programs is bankruptcy. During strong economic time and weak, bankruptcy ads can be heard on the radio and seen on television, however, bankruptcy should only be considered as a last resort when dealing with credit card debt because it carries many serious side-effects. The repercussions from filing for bankruptcy include: the virtual destruction of one’s credit record, the near inability to obtain future credit for up to 10 years, denial of apartment or home rentals because of the bankruptcy, being forced to pay possibly very high deposits on things like cable and satellite television, Internet, home phones and common utilities like gas, electricity and water. finally, the embarrassing possibility of being rejected for a job or promotion, as more and more employers these days are conducting credit checks as part of their normal screening for new job hires.

A less intrusive form of debt relief is debt settlement. This is arguably the most effective debt relief program in existence today. Debt settlement works by having a debt settlement firm negotiate on behalf of the consumer with their creditors to facilitate an agreed upon reduction of the amount of credit card debt which the consumer owes. Using a debt settlement program, consumers can expect to receive debt reductions of 50% at a minimum, and as high as 75% reductions in credit card debt. Debt settlement is much easier on your credit ratings and does not carry the stigma or repercussions of bankruptcy. Of the two a negotiated debt settlement is the winner over bankruptcy almost every time.