There are mainly two different methods for paying off credit card debts. They are credit card debt consolidation and credit card debt elimination.
What is the difference between credit card debt consolidation and credit card debt elimination?
Credit card debt consolidation is a reorganization of all debts into one debt with the help of a debt management company. One will have 5 to 10 years of time to payoff this single debt. But debt elimination is the complete paying off of credit card debts as a negotiated settlement, for which you get 90 to 120 days payoff time.
Who are eligible for credit card debt elimination programs?
Most credit card companies offer debt elimination options to debtors who are not suitable for legitimate bankruptcy. If the companies feel that bankruptcy may result in no gain for them, they often go for debt elimination.
Who are eligible for credit card debt consolidation programs?
All debtors with a steady income and average or high credit rating are eligible for debt consolidation.
How long does these credit card debt settlement processes take?
The usual time period is three to nine months. By it may vary with credit card providers or debt management agencies, and with personal needs and credit ratings of debtor. Some persons stretch the credit card debt negotiation processes in order to get more time to get debt settlement funds accumulated.
What is the cost of these debt settlements?
Most debt management agencies providing credit card debt consolidation charge specific monthly fees with your monthly debt payments. But the companies engaged in debt elimination will set a fee as a percentage of the total outstanding debts included in your program.
