Credit cards loans are unsecured loans and hence they have a very high rate of interest charged to the card user. Once a debtor is caught in the vicious trap of huge card loans, it is very difficult to get out of it. The card companies levy heavy penalties on the debtors for late payment and non payment of card loans. Moreover they charge a higher rate of interest on the defaulted amount payable. But by enrolling in a debt settlement program it is possible to eliminate a large amount of the credit card debt.

A debtor can choose to negotiate with the card company himself or herself. In this case he or she will have to deal with the various creditors. Instead a debtor can hire the professional services of a debt settlement company. It is possible for a debtor to convince the card company to reduce the amount payable to one which is much lower than the original amount payable. The debtor should choose to pay the settlement amount as a lump sum. The amount payable by installments is always higher than that payable as a lump sum. If the debtor cannot afford to pay a lump sum amount, he or she should request the credit card company to waive off the interest on the amount payable. Creditors usually agree to this arrangement.

There are other methods to reduce the credit card bill. The debtor can consolidate the various high interest credit card loans with a single low interest loan. Many money lending institutions specialize in consolidated loans. The rate of interest on the amount payable can be further reduced by converting the unsecured loan into a secured loan. By following these methods of debt settlement and consolidation, a debtor can reduce his or her credit card loans by almost 50%.