Are you suffering from the failing economy?  Have you been laid off and need some help with your credit card bills? Are you considering bankruptcy because you see no other alternative?  If any of these apply to you, read this article before you make a decision.  There is an alternative to bankruptcy and it is called debt negotiation but there are some things you should know about it before you decide to go down this route.

Debt Negotiation Advice

The first thing you should know about debt negotiation is what exactly it is and what it can do for you.  Debt negotiation is the process of negotiating with your credit card companies and getting your balance lowered.  You show them that you cannot pay your bills and if they do not negotiate with you, you will be forced to file bankruptcy and they will get no money.  So you point out that it is in their best interest to accept your settlement offer. 

What kind of results can you expect from debt negotiation?  On average, you can save 40-60% off your balances.  You can reduce what you owe significantly.Your settlement results will vary.  Your credit card company has to aggree to your settlement for you to save money.But, if they refuse to negotiate with you, you can wait until the account gets sent to a debt collection firm who may be more willing to settle your debts. 

Here’s more debt negotiation advice: if you choose to do it yourself debt negotiation, it will cost you nothing to settle your debt.You could also hire a debt negotiation firm and pay 15% of your credit card debt as their fee.  When you compare this fee to the fee for filing bankruptcy, you can see that bankruptcy is cheaper upfront.  Bankruptcy can cost you $500-$2000 and ruin your life for 7-10 years.  Debt negotiation can cost you $3750 if you have $25,000 of debt, $7500 for $50,000 of debt.  But when you settle your debt, you can start reestablishing your credit in as little as 2 years. 

What else should you know about debt negotiation?  Your credit score will drop when you use debt settlement.  Since you do not plan to use credit cards anymore because they got you into this mess in the first place, this should not be a concern. 

So if you thinking about bankruptcy, do a little research about debt negotiation and see if you can negotiate down your debts and be debt free in 1-3 years instead of 7-10 with bankruptcy.

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