Did you know that bankruptcy generates two negative factors? One affects the loan taker himself and the other strikes the loan giving companies. What happens when you declare that you have run out of money and you cannot pay your dues? A credit card company faces a big damage because it cannot claim anything from you. If you have spent twenty thousand dollars using your card and you file for bankruptcy, the credit card firm faces a loss of twenty thousand dollars. How to use the threat of bankruptcy to eliminate unsecured debt? Let’s look at how you can take advantage of the bankruptcy factor.
How to use the threat of bankruptcy to eliminate unsecured debt? Looking at the damages
As a loan taker, if you go bankrupt, you lose your credit card score completely. In addition to that, you are counted as the most unreliable customer by money granting firms. However, the damages faced by these companies are much greater.
- The company loses everything which you have spent
- Recession has been very damaging. Hence even the loss of one dollar makes a lot of difference
- Money granting companies are happily agreeing to the proposals of debt settlement and debt consolidation. These options are giving them much more than a big zero.
How to use the threat of bankruptcy to eliminate unsecured debt? The credit card company will try its best to prevent the condition of bankruptcy. Hence it will even accept the settlement proposal which offers a reduction of thirty percent. It is better than losing everything. Hire a professional relief consultant and tell him to use this threat to get the best deal. If the money granting firm is prepared to write off fifty percent of your debts, you can increase this percentage to seventy or even more.
At the moment, financial companies are in a poor state. They cannot afford large losses through bankruptcy and they need monetary resources to walk out of recession. The only way to do this is to recover the maximum amount of money from the credit card holders. Money granting firms are not pressurizing their clients because this increases the bankruptcy rates. How to use the threat of bankruptcy to eliminate unsecured debt? This is the right time for you to get your credit card issues solved on a permanent scale.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.