Although it is a fact that no debt is easy to handle but paying back the credit card debt is the trickiest act.
It is due to the fact that credit card companies have many hidden charges.
For example, interest rate, late fee charges etc.
These all charges have always been difficult to be paid back.
Bankruptcy is that option which can get people out of their debts in no time.
But it is not the right choice.
This is because it proves to be the wrong choice in the long run.
Insolvency proves to be more disturbing in the future.
Moreover, bankruptcy is not able to provide the creditor his money back.
This is the point where everyone needs a solution i.
e.
in a way that the debtor gets rid of his debt and the lender gets his money back and the economy also gets stable.
Here, comes the debt settlement process.
This program has become successful with the help of professional debt Settlement Company.
All the debtor has to do is to hire the debt settlement company.
Purpose of this company is to get maximum reductions in the debts of their clients.
Usually, 50% reduction is given to the debtors.
In rare cases, 60% reduction is also granted to the debtor.
Once the reduction is finalized, rest of the amount is to be paid as a lump sum or in monthly installments.
It depends on the debtor himself that how he will be able to pay the monthly installment easily.
Following a fixed path may lead a person to a debt free life in a very short period of time.
In general, it can be said that debt settlement is a legal process which helps the debtor to get back to a debt free life in no time.
It is the best legal process which can be used by anyone to get out of the pools of debts.
All These programs have been introduced by the government to help the people to get rid of the after effects of the recent recession.
These relief programs are better than bankruptcy.