Who are credit card fighters and can they really eliminate credit card bills? However, before that, you need to know why credit card companies are willing to eliminate dues. “Credit card fighters” is a term recently coined for the debt settlement companies who help people and businesses to fight off their accumulated debts through negotiations.
In most cases, we are not careful while we are using plastic money. We are buying almost everything including daily provisions, furniture and clothes on credit. This increases our monthly bills rapidly. The bank applies interest on our spent amount. Hence, the more we spend, the more we pay. Debt relief seems quite unbelievable. Thus, let’s glance at the logic behind it.
You are taking advantage of recession to eliminate your debt?
Recession is nothing but a big economic problem for everyone. Do you know that credit card debt fighters are able to eliminate debts due to recession? This is really happening and credit card companies are accepting settlement deals and negotiating debt elimination because:
1. Financial companies are running out of customers these days. Because people are trying to survive without plastic money. In other words, they cannot afford to pay massive bills and interest. The existing customers are not paying their dues because they are not in the financial position to do so. Hence monetary firms are not generating any revenue. In addition to that, most of them have not recovered their dues.
2. We commonly hear that lending companies pressurize their customers a lot if clients don’t pay their bills on time, law suits are filed against them. The present situation is quite unfavorable for these firms. A lot of clients are filing for bankruptcy without caring about their future. Once a client files an application for bankruptcy, the money granting firm loses everything which he has spent. Do credit card fighters offer a better deal to them?
3. As a matter of fact debt negotiation is the only sane way out for the financial companies to get something back from consumers or they end up with nothing. So for the card holders it is a win win situation and if they want to retain some of their credit scores intact they can strike a deal with their bank and get their bill reduced.
Is elimination a dependent factor?
How do banks decide the elimination percentage for each customer? Is it awarded randomly? The bank management takes several factors into account before taking this decision. The liability amount is one of them. Credit card fighters are able to get better deals for large liability holders. This is because credit card companies do not earn a substantial amount on small dues. For instance, if you have to pay ten thousand dollars to the bank, you cannot expect eighty percent reduction because this leaves the bank with two thousand dollars only.
The customer record is an important factor as well. Credit card fighters find it hard to get good percentages for loan takers who have been habitual defaulters. The bank management will check your record before the negotiation sessions begin.
Is elimination achievable?
To cut a long story short, with the help of a good settlement company on your side it is now very easy for any person under debt to eliminate his or her unsecured debts almost by half or even more. This is possible just because of the available negotiation option which must be exercised carefully and professionally to get desired results.