Are you worried as to how youre ever going to pay off your credit card debt? Well stay with me, were going to do some scenarios showing you the problems with credit card debt and the solutions that you have available to you. Were also going to talk about how you can possibly negotiate your own credit card debt, saving yourself thousands and thousands of dollars. First of all, lets talk about the problem itself. Lets suppose you owe $30K in credit card debt. If you owe $30K and your average interest rate is 18%, according to bankrate.com, your minimum payment would be $750, and it would take you 37.5 years to pay this back. You would be charged $44,416.00 in interest and thats on top of the 30K that you borrowed. Your grand total would add up to $74,416.00. You can see why so many Americans are in financial trouble.
Now lets talk about your options. With debt negotiations you may be able to save yourself thousands of dollars of interest and payments. Lets assume that you are current. Debt negotiations dont necessarily mean that you will always settle the debt. The first debt negotiations would be getting your creditors to lower your interest rates with more favorable terms. Again this could possibly cut your payment in half and if youre able to add additional monies to the payment you could be paying the debt off a lot sooner. However, if you are having a hard time paying your debt, or youre behind with your credit cards, it is possible that you can have the debt compromised altogether. Lets assume that you have that $30K in credit card debt again. It is very possible that you can negotiate with your creditors and get them to settle for 25 cents on the dollar. That would mean that you would be paying off $30K in credit card debt for $7500. 00! Now again lets go back to the original 18% rate. Remember, you were going to be paying $44,416 in just interest. Now, using the power of negotiation, youre actually paying the debt of at $7500.00. Now, keep in mind that there is a drawback to this which is, it will impair your credit. But if youre already behind on your credit cards, chances are your credit is already impaired. Not to mention, you can see what kind of problems there are when you are in debt.
Its a lot better to live within your means and keep yourself out of debt altogether. Think about America right now. The United States may not be able to pay its own debt. That is not good. But lets go back to the scenarios of what you can do for yourself. Lets suppose that you hire a debt negotiator. A debt negotiator typically charges 15% of the total debt owed. So going back to the $30K of debt owed, @ 15% their fee would be $4,500.00. The $7500.00 that they would settle the debt for, along with the fee, would have you paying $12,000.00 to pay the debt and the negotiator. That is certainly better than paying $44,416.00 in interest or $74, 416.00 over time. Its also better than simply paying off the $30K. But, what if you were able to do this yourself? What if you were able to negotiate with your creditors and get them to reduce?
Credit counseling centers only reduce interest rates and late and/or over limit fees. They also charge anywhere between $35 to $45, sometimes even $50 per month. This could add up to over $500.00 per year. Remember they cant reduce the balances, only interest and fees.
How would you negotiate the debt yourself? After all debt negotiators are trained professionals who know what to say, and when to say it. They are also trained to know the other side, the creditors side. But, what if you were trained? What if you were trained to be a debt negotiator yourself… able to handle your own situation, no longer in fear of creditors? What if you were taught techniques where you could actually settle your debt through the mail? All of these techniques are taught through The Debt Negotiating Academy.
For additional information please click on the link here.
Tim Town is the founder of PayoffYourDebt.org
To learn more about your options or techniques on getting out of debt visit
http://www.payoffyourdebt.org/negotiate
Tim Town is the founder of PayoffYourDebt.org
To learn more about your options or techniques on getting out of debt visit
http://www.payoffyourdebt.org/negotiate
