You decide to take a big leap and leave your current job and start the business you’ve always dreamed of starting.  You saved up money for years and you have several credit cards you can use just in case.  Well the worst scenario happens and the business does not take off.  Sales are disappointing.  You burn through your savings in a few short months just to meet payroll and then those “just in case” credit cards become a lifeline to your business.  Soon, it’s becoming apparent that the business is not going to work in this current economy no matter how hard you work.  People are not spending money and it’s time to throw in the towel.  But you are stuck with tens of thousands of credit card debt and you may soon find yourself struggling to make your credit card payments. 

You need debt relief but you don’t know how to get it.  You’ve thought about bankruptcy because you heard it was a great way to eliminate debt but then it has many drawbacks that you need to consider before you do.  Bankruptcy does not eliminate debt anymore.  With Chapter 13, you have to payback most of what you owe, usually over a 5 year period so this will not provide you with the debt relief you are looking for.  So how to eliminate debt? How about debt settlement.  Debt settlement will allow you to eliminate your credit card debt and give you extra money in your pocket each month.

How to eliminate debt with debt settlement

What you do is make a debt settlement offer with your credit card company that will allow them to collect some money due on your account instead of getting nothing if you file bankruptcy.  If you owe say, $30,000 in debt, you could offer $12-$15k, a reduction of 50% off your debt, and most credit card companies would accept that.  Debt settlements of 40-60% are not uncommon. 

You have to show the credit card companies how it is in their best interests to settle your debts now instead of risking losing it all if you have to file bankruptcy and stop making your payments.  You want to pay them what you owe but you can only afford a smaller settlement and they should take it to help you out and collect some money on your account.  Give it a try if you need debt relief and you are considering bankruptcy.