There are many tools and options that can be used to bring down your credit card debt. However, most options offered by lenders merely scratch the surface. You may be allowed to settle $5000 credit card loans owed to give credit cards issuers at $4500 per card. This is what you will be offered when you try to consolidate the loans. This means a savings of $2500 over $25,000 owed to lenders. This works out to just a ten percent reduction in the debt. The remaining ninety percent will have to be repaid in full.

This can be a very big problem when you are unemployed or have been forced to accept a pay cut. The prices of essential goods and services are very high. Overall, people are finding it very difficult to meet make ends meet. Further, we never have been a nation that saved a lot of money. We have always been a debt friendly nation. Today we find ourselves stuck in debt because we presumed that the good times would continue forever. Traditional solutions like consolidation, interest moratorium, credit counseling and loan repayment holiday will only go so far. The real solution to your problem is debt settlement.

You should employ professionals to negotiate with your lender on your behalf and seek waiver of the debt. However, unlike other solutions, the waiver will not range at five to ten percent of the amount owed. Rather, it would range from 50 - 70 % of your credit card balance. This means that you need to repay just four dollars for every ten dollars owed. If a waiver is applied to the example given above, you would have to repay just ten thousand dollars to repay all your credit card debts.

Needless to say, the $12,500 that you save will help you manage your finances better and improve your savings. What makes debt settlement is even more attractive is the fact that the money can be repaid in installments. You will get twelve to twenty four months to repay the debt. At even the most conservative estimates, this works out to repayment of less than a thousand dollars per month.