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Eliminate Credit Card Debt Without Paying

Ashwini Kulkarni Sule Jan 12, 2019
Is it possible to eliminate credit card debt without paying anything? Well the implications could be serious. Read ahead to know more...
This happens with even the best of us! We spend inordinately with our credit cards without thinking for a second, and when, at the end of the month we receive our statement, we feel like running away to some secluded island.
What if you could just forget all about your credit card debt and hope your lender does the same? Unfortunately, this would be a dream.
You cannot in your right mind think about vanishing away without paying your credit card debt and hope to continue with your normal life. But then, does that mean you have no way of coming out of the debt? Sure there is. There are certainly some ways that enable you to legally eliminate the debt without paying it in full amount.

Is it a Good Idea Not to Pay?

Everyone has his own way to deal with credit card debt. Some may file bankruptcy, while others seek help from third party debt settlement companies. Filing for bankruptcy eliminates all your debt, but has long-lasting implications on your credit score and history.
In today's world, the importance of a credit score in our lives can not be reiterated. After bankruptcy, you have to work really hard towards making your credit rating acceptable. This may get challenging, considering you will have a tough time finding lenders. Even if you do succeed in finding one, the interest rates can really knock you off your feet.
If you decide to completely ignore your credit card debt and still try to get on with your life, you will face even more challenges. Firstly, there is no financial institute in this country you can go to without getting your credit history scrutinized.
No bank will ever lend money to someone who has had trouble with previous debt. Not only this, but you will also face difficulties in your career prospects, should your potential employer decide to check your financial credentials. Just imagine the amount of embarrassment you would inflict upon your family if you are shown the door wherever you go.

Reduce Credit Card Debt

A better alternative to debt elimination would be to face it without running away. Assess your financial position and see how much you can afford to shell so as to cover your debt. However, all the measures for reducing the debt amount should be taken before you miss any payments.
Not only will this preserve your credit score, but it will also enable your credit card company to favorably look at your situation. If your lender has already wasted time and efforts on your case, he wouldn't hesitate to waste more in the hope of collecting all the debt from you.
A negotiation before you miss any payment would give you a head start in debt settlement. You can politely explain your situation to the lender and tell him what you have got to offer in terms of repayment. He may not agree right away, but you need to assert yourself without losing your cool.
Do not promise something that you cannot accomplish later. Your lender will most likely get your point, and may even agree to your conditions. After all, he may also not want to employ a recovery agency and deal with the hassles of commissions, etc.
If he is not going to recover the full amount, he may take what you have to offer to him in the first place, rather than give commissions to third parties and end up with the same amount in hand. If you are not confident about negotiating yourself, you can hire a debt settlement firm. But then, be prepared to make provision for their fees in such a case.
Thus, it is indeed a bad idea to try to eliminate your credit card debt without making any payments. Instead, work on reducing the debt by adopting legal and moral ways.