Legally Eliminate Credit Card Debt – Things Credit Card Companies Don’t Want You to Know

By Marie3atha on January 30, 2010 In Uncategorized

The title makes it sound as if credit card issuers have been involved in a conspiracy against the borrowers. Well, there is nothing of that sort. It is just that the borrower never bothered asking about these things and the credit card companies never saw any reason to inform the borrowers on their own. Read ahead and know some points about your card issuers that you never would have believed to be true.

• Credit card issuers do not mind if you do not repay the debt in full.

I am ready to stick my neck out and say that this is always the case irrespective of the amount of debt owed. If you are a person who has a revolving balance on your credit card, then you certainly will be paying a lot of money in the form of interest. Card issuers obtain funds at very low rates from big financial institutions. They charge more than twice the rate they pay from their customers.

The end result is that they earn a fantastic profit whenever the customer pays interest. If you combine the interest and the principal repayment, you will definitely be providing a huge profit to the card issuer. That is the reason why issuers do not mind giving a ten or fifteen percent discount on the total amount owed. If you have been using the same credit card for many years, you certainly can ask for even a seventy percent waiver without causing a loss to the card issuer.

• Card issuers are as scared of you as you are of them.

Credit card debt is unsecured debt. Apart from your signature on the contract that states that you have borrowed money and that you promise to repay the same, there is nothing that will help card issuer recover money in a crisis.

Even when an individual declares bankruptcy, the credit card debt and other unsecured debt comes last. The first is the dues to secured lenders. The second is payment to the government. Only then will unsecured lenders enter the picture. Needless to say, unsecured lenders are always aware of this fact and keep this in mind when pushing their customers for repayment.

You can easily extract more benefits from your card issuers if you raise the point of bankruptcy. Combine this information along with the services of a settlement company or any other debt relief service provider to bring down your debts very quickly.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

Free Debt Help.

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