Wish upon a money star
Yes, I know, it sounds crazy and against all that banks believe in, but sometimes credit card companies and banks will actually forgive a portion of a consumers outstanding debt. The big banks know that in some situations ‘a little’ is better than ‘none’. In extreme cases, banks have forgiven up to 70% of credit card debt in exchange for complete payment of the remaining 30%. Nothing is static in these volatile times we are living in. Once again, calling and discussing your options directly with the banks can be beneficial.
Is Credit card debt forgiveness good idea?
Sounds wonderful doesn’t it? The downside is that credit card debt is never forgotten. You can consolidate credit card debt and negotiate for forgiveness on some of it, but banks will surely make a note of this on your credit report. This type of debt consolidation or debt reduction will always be reported as non-payment and will of course stay on your personal credit file for many years.
Who can consolidate debt from credit cards using loan modification?
For the most part, this drastic plan to consolidate debt and reduce liabilities is only for those who have no income and have not paid their bills in many months. If it looks like you can still make some payments then banks will likely want you to just keep paying and milk your account for long term interest charges and fees. These loan modification agreements are in the banks best interest, not yours, so they will pick and choose when to negotiate. Credit counselors can help assist you in these credit card debt negotiations but beware of huge fees and percentages added to the total. You might be surprised at how well you can negotiate your own loan modification program and the experience will teach you a lot about the whole process which can help you to consolidate debt in the future.
