How to Clear Unpaid Credit Card Debt

A Debt Relief Program to End Money Problems

Sep 4, 2009 Asa Ghaffar

Looking to clear unpaid credit card debt? Find out how a debt relief program will allow you to become debt-free in under 36 months. Write-off 50% of unsecured debt.

According to the Nilson Report, the median level of unpaid credit card debt for those with a charge card was $10,679 at the end of 2008. A debt relief program, such as a debt settlement plan, Debt Management Plan or filing for bankruptcy, can help someone overcome money problems.

Clear Unpaid Credit Card Debt Today

Clearing unsecured debt is a priority for millions of Americans. When expenditure is greater than income and/or an income-to-debt ratio is too high, it becomes increasingly difficult to achieve. A debt solution from a private or non-profit debt counseling service can help to address this balance.

Debt Settlement Program - Pay Off Credit Card Debt in Less Than 36 Months

This debt relief program involves a financial professional negotiating with creditors to establish a reduction in the principal (the amount owed). It is possible to write-off up to 50% of all unsecured debt. Any remaining unpaid credit card debt is then gradually cleared over the next 12 to 36 months.

It is possible to extend the term beyond 36 months, but this diminishes the likelihood of creditor acceptance. Avoid debt settlement companies that front-load fees (up-front charges); any fees should only be taken from monthly contributions.

Control Unpaid Credit Card Debt with a Debt Management Plan

Following a comprehensive budgetary analysis of income and expenditure, it will be determined what a debtor can realistically afford to offer creditors each month. Should this be agreeable to collection agencies, a payment is then made until the debt is fully cleared.

Should a creditor ever have a dispute, an account manager will handle these queries. Many creditors will also agree to stop imposing further charges and freeze interest payments so that any unsecured debt can be paid off as quickly as possible.

Write Off Unpaid Credit Card Debt By Filing for Bankruptcy

Provided that income is below the state median and few non-exempt assets (valuable collections, a sports car etc) are owned, this debt relief program can help someone to become debt-free in just 4 to 6 months.

The negatives are that the matter will be made public and it will show on a credit report for up to 10 years. Under the 2005 bankruptcy laws, it is now necessary that the debtor receives credit counseling from an approved provider at least 180 days prior to filing.

A Debt Relief Program to Clear Unpaid Credit Card Debt

It is possible to clear charge card debt with an appropriate debt solution. Always seek advice from a non-profit debt counseling service before proceeding. Whilst a debt settlement program or Debt Management Plan may provide the answer, it is quite possible that improved budgeting will be sufficient to address any money problems.

Sources

creditcards.com

Disclaimer: This article in no way attempts to give legal or tax advice. One should consult a licensed attorney, tax advisor, or other qualified professional before proceeding.

The copyright of the article How to Clear Unpaid Credit Card Debt in Personal Budgeting/Finance is owned by Asa Ghaffar. Permission to republish How to Clear Unpaid Credit Card Debt in print or online must be granted by the author in writing.

Unpaid Credit Card Debt	Debt Settlement Program	Debt Management Plan
Debt Relief Programs	Overcome Money Problems