I owe a large balance on a credit card. Every month I make a huge payment as the interest is very high. I've been paying a while but the principle balance is not at all going down. I heard that there are many credit management ways through which the outstanding debt amount can be lowered (as half of the amount). I'd like to ask everyone if this is true, and how is it different than declaring bankruptcy? Does it hurt the credit?
You can request the card company to lower the interest rate. If you have always been an ontime payer, then the creditor may agree to your request.
I heard that there are many credit management ways through which the outstanding debt amount can be lowered (as half of the amount)
Yes, sometimes the outstanding debt amount can be lowered by 50%. However, debt settlement hurts your credit, as you will have to miss payments before settling your debt. Moreover, the creditor may not agree to even settle your debt.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.