Owe More Than $10,000 on Your Credit Card? Read This Before You Pay it Off

According to credit bureaus, nearly 37 percent Americans have more than $10,000 non-mortgage debt.  If you happen to be among these people, you may want to reconsider the way you are paying it off, because ironically crossing the 10K credit debt mark can be very beneficial for you.

If your credit card debt happens to be more than $10,000 you are considered to be a customer worthy for negotiation. It means that you will most likely be eligible for a debt settlement program, which will help you reduce your debt significantly.

Credit card companies don’t do this because they want to help you out. The reason for these programs is that when you owe thousands of dollars to your credit card company, which are mostly interest anyway, you are a major risk for them.

They are aware that if your financial situation is getting worse, likely you will file for bankruptcy, which will make it much worse for them. It is much better for credit card companies to offer you some sort of debt settlement plan and reduce your credit card debt by 50% than watch you getting deeper in debt and declare yourself bankrupt.

Many companies will agree to lower your interest rate, but if things go well, you can wipe your debt off by 40-50 percent instantly.

There is no doubt that debt settlement can help you get rid of a huge portion of your debt. However if your credit card debt is less than $10,000 don’t get tempted to take more credit just so you can qualify for debt reduction programs. Wiping your debt off is a difficult task and if you haven’t reached that $10,000 mark yet, it is better to go the other direction and focus on paying it off as soon as possible.