Eliminating Your Credit Card Debt Without Making Payment - Does It Really Exist?

By Author: J.J. Yong
Total Articles: 963
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Debt elimination is also known as debt negotiation. It is one of the financial solutions a debtor can apply when he or she fails to pay off the debt. In order to reduce the outstanding balances, the negotiation process between the creditor and debtor takes place. This process is considered completed when the settlement offer made by the debtor is accepted by the creditors. Under normal circumstances, most of the creditors are willing to reduce partial of the debtors' total debt during economy crisis because they understand that their debtors have lost financial ability to pay back the debt in full.

It would be ideal for everyone in debt if the creditors are willing to write off the debtors' outstanding without requesting them to pay back a single cent. In the real business world, there is no 100% debt elimination. The highest "discount" a creditor is willing to give is between 70%-80% of the total debt. The debtors are still required to pay back partial of the debt based on their financial position.

Seriously speaking, for credit card holders who have not paid the card providers for months, it is for sure that ...
... a series of collection action will be taken by the creditors on them. Some lenders may even write off the debtors' accounts as bad debts and they sell the accounts to debt collection agencies. On the other hand, some creditors will take legal action on the debtors and request them to pay in full. All these actions will definitely affect the debtors' credit score badly in the long term. Hence, you are reminded not to "run away" from your debt. It is no point for you to refuse making payment because it is your responsibility to clear off your outstanding balances as a card holder.

There are many debt relief companies in the market nowadays and they are good at promoting themselves in assisting the debtors to get rid of their debts. However, in general, no matter how good a settlement company is or how excellent a settlement lawyer is, the creditors are not willing to accept 100% debt elimination without any payment. The creditors still want the debtors to pay back partial of their debts, either in one lump sum or by installment. If a settlement company offers 100% debt elimination to you, it is for sure that it is a scam. Be realistic. 100% debt elimination doesn't exist in today's business world unless the outstanding amount is very less, say about few hundred dollars or less than that. In other words, the debt amount must be a sum which the creditors feel totally not worthwhile for them to collect back from you.

In short, you are reminded not to avoid your debt. Negotiate with your card provider for the best deal. There is no short cut to be debt free. Bear in mind that your creditor has the right to file lawsuit on you if you ignore your debt.
For more credit card debt elimination resources tips, visit http://CreditCardDebtSolver.com