Repaying Unsecured Credit Card Debt - How to Legally Never Pay Back 50% of Your Credit Debt

Credit card debt is mostly considered as unsecured debt due to the fact that there is no asset guaranteed against it and it involves high risk. Credit card companies charge high interest rate for loan lent on high risk. Consumers under a huge debt of over $10,000 have an option to eliminate at least 50% of the debt. You must be wondering, how come the total unpaid debt inflated enormously and how to get rid off it. It is not your fault, but the card system has been designed like that. Its existence is based on making profit whenever you miss a full payment. Perhaps most of us do not analyze it so minutely while taking a credit card, various charges that is applied or calculated is either not published or not explained to the customer elaborately.

To eliminate the credit card debt, Let us take a peek inside its operation and financial calculations. Credit companies provide you a plastic card which has a maximum limit and a due date of the billing cycle, an interest rate applied in lieu of the revolving charges. The credit card is a blessing as long as it helps you get a short term loan and you maintain a consistent payment every billing cycle. Once you miss the payment on the due date or make only a partial payment, the interest rate is charged on the total loan. This means, if you have are short of even $10 on a total of $2000 to pay on the due date, the interest rate is applied on $2000 till you make the payment. Other major fees include usage exceeding maximum limit or bounced cheques and transactions in foreign currency. As a matter of fact several merchants have a hidden charge associated with the cost of their products which is charged to people not using credit card as well. In the year 2008, credit companies have been reported to make an interchange fee of $48 billion. Does this portrait a better picture how credit card companies make money?

It is legal to eliminate 50% or more on the debt and pay only the forgiven amount, negotiation is the technique which makes it possible. During recession, credit card companies cannot apply interest rates whimsically to your outstanding balance. Leading you towards bankruptcy and handling default accounts would be the last thing creditors would prefer during recession. So why not make the best use of the time and reduce the debt. Talk to your card company, explain your financial stress and ask for a waiver. If they agree to cut down the interest rate or eliminate the late fees, over due payments, it leaves you with less than 50% of the total debt to be paid.

Finding legitimate debt settlement companies is not that difficult but consumers must know where to look. It would be wise to utilize a debt relief network that will qualify the companies for you and ensure that they are legitimate and have proven themselves. To locate the top performing debt settlement companies in your state check out the following link: