How to Get Rid of Unsecured Credit Card Debt

Credit Card Debt is affecting the lives of tens of thousands of U.S. consumers during this economic downturn. The U.S. will, as always, rebound from these hard times soon enough. 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, the only way to survive these hard times is by getting rid of unsecured debt with as little personal financial damage as possible.

How can this be done?

Debt relief is what many need today. 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. The blame for these personal circumstances can be pointed in many directions. The current state of the economy is one argument many make in blaming their situation. Some make the argument that the credit card issuers share much of the blame for the rise in credit card debt today. And then there are the consumers themselves who should consider that their debt issues are their own fault above any other excuse. 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, limited availability of personal credit for up to ten years, the inability to rent an apartment in one’s own name, being required to pay deposits for future home utilities such as gas, electricity, water, home phone, internet and cable TV, finally, the embarrassing possibility of being rejected for a job or promotion, as more and more employers are conducting credit checks as part of their normal screening for new job hires.

A less intrusive form of debt relief is debt settlement. Debt settlement is considered a more effective form of debt relief. Under a debt settlement approach, the consumers credit debt balances are negotiated for reduction by a firm on behalf of the consumer. 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.