Forgetting credit card debt feels like our dept is over, and you enjoy living. Alas! It’s not the case. It’s just an illusion. The bitter truth is that nothing is over, and in fact, overload is on our shoulders. We need to pay some amount of our debt to keep our credit score healthy. The card debt forgiveness causes debt settlement in worse conditions; it will also result in bankruptcy. Such things will take you into depression and a cumbersome state.
The Strategy
One can consult a debt relief provider who would help you in negotiating with your provider. These providers can’t ask for fees from you, as the law doesn’t permit that. However, there is a catch. Your dept company may not accept this offer of negotiating.
One more strategy that is often not suggested is ignoring the card debt until the company whose card you are using sells your account, or till the time your repayment expires, the company sues you.
This period called the statute of limitations that takes 3-6 years vary in different geographies. As the time runs, your dept gets bestows with penalties and interest. In such a case, paying some amount may lengthen the period. The more you will take time; the credit score goes unhealthy.
To avoid bankruptcy, you can go for bankruptcy protection, a legal procedure wherein the court of law checks your finances and gives the amount that you can repay to your debt provider. According to Chapter 7 & Chapter 13, the court could sell some assets of you to repay the debt provider or come out with a repayment strategy.
However, if you go for bankruptcy, your debt company’s negotiating process will not go further. As it will be now discussed in the court of law. The case’s outcome may go either way – in your favor or against you.’
The Solution
The methods discussed above aren’t the last solutions that you are left with. You can decrease your debt with a dedicated effort to meet your goal. You can go for snowball & the avalanche methods. These methods that come with the same aim facilitate you in prioritizing your debt. This takes the pressure of repayment from you and avoids the cumbersome effects of bankruptcy and settlement.
