Credit Card Debt Hangovers - How Debt Ridden Americans Are Dealing With Massive Credit Card Debts

Online, May 5, 2010 (Newswire.com) - A recent study has determined that there are more Americans currently in credit card debt than at any time in history. Many consumers with high debt balances that continue to pay only their minimum payments will spend their whole lives trying to pay back credit card debt. Due to the recession and increased unemployment, many consumers are struggling just to pay their minimum monthly payments. In the past many of these debt ridden consumers would file bankruptcy to get rid of credit card debts however the passage of new bankruptcy laws has made bankruptcy much more difficult to qualify for. So how are consumers today dealing with massive credit card debts?

Debt settlement is one of the ways that debt ridden Americans are dealing with massive credit card debt. Debt settlement is where the consumer ends up only paying a percentage of their overall debt back to the creditor. The average debt settlement is negotiated for around 50% of the overall balance although results will vary depending on several circumstances. Consumers need to be at least $10,000 in unsecured debt and also be experiencing a legitimate financial hardship to qualify for debt settlement . Since new bankruptcy laws make it more difficult to qualify for bankruptcy many consumers with too much credit card debt are opting for debt settlement.

For the last 20 years Americans have been living in a consumer based society where unlimited credit was available and being in debt was not only in common but actually encouraged. The recent credit crises in 2009 proved that creditors could no longer issue unlimited credit and expect to receive all of their money back. Major credit card companies realize that if their customers file bankruptcy they will likely receive nothing. In order to avoid a complete loss, credit card companies are making debt settlement deals.

Getting a credit card debt settlement does not come without consequences. The biggest consequence is the negative affect on the consumer's credit score. Debt settlement will typically negatively affect a consumer's credit rating for 2-4 years. This however is better than bankruptcy which will negatively affect credit scores for a minimum of 7 years. There is no pain free way of eliminating credit card debt however debt settlement can make financial sense for many debt ridden consumers.

Consumers who have too much credit card debt and are considering a debt settlement need to know how to locate a legitimate debt settlement company . The easiest way to do this is to visit a free debt relief network that will be able to provide free consultations as well as provide the consumer with legitimate and proven debt settlement companies.

To locate legitimate debt settlement companies for a free debt consultation check out the following link:

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