Nationwide Debt Reduction Introduction – Part 6
6. DEBT REDUCTION
Debt Reduction is simply the process by which we negotiate a lower dollar pay off on your credit card debt than what you now owe. Why would a credit card company do that you may ask? Well, as mentioned on prior pages, studies show that if you have had a credit card for over three years, and used it on a normal basis, after three years you would have paid off all of your purchases. The rest is just interest and fees.
We love giving the below example as it could work on anyone. Let us suppose that your neighbor “Joe” wants to be the talk of the town, and buys the best BBQ grill on the market. (Or your cousin Mary who wants to buy the best dress for her upcoming wedding). They both take out the brand new shiny gold credit card they received in the mail the prior week with a credit limit of $5,000 on it.
Joe buys his top of the line BBQ grill and Mary buys her stunning wedding dress, each of which cost $5,000, the exact amount of credit card debt limit they had on their brand new credit cards. Now, both Mary and Joe are smart people. They do not want to be in credit card debt. Therefore, both agree that they really want to pay this debt off within a three year period.
Therefore, both agree to send in monthly payments of $139.00 to pay off this credit card debt. ($139.00 x 36 months = $5,004.00). They have now paid back what they purchased correct? Not so fast! That is not what their credit card debt statement says. Instead the credit card debt statement says that both Joe and Mary still owe over $2,958.44 based on 22.9% interest. Therefore, if both Mary and Joe continue to pay $139/month it will still take them more than two more years to pay off this credit card debt. Ah, the power of interest rates!
Oh, as a side note, does anyone know where this $5,000 that the credit card company generated? It did not exist in our country’s monetary system. Does that mean that credit card companies can create money out thin air? Yes, in fact they do it every day thousands if not hundreds of thousands times every day!
Therefore, what we do is negotiate and settle interest on your credit card debt, although we are able to bargain for the purchase amount as well. Is this something you could do on your own? Not really. You see, credit card companies could care less about you. They do not want you to pay off debt. They would prefer to keep you in what we refer to as “the debt trap”. You pay the small monthly payment, or just above that, and you end up like a hamster running in circles each month and getting nowhere.
Why not talk to a debt reduction expert. The call is free. The consult is free. Find out how you can become debt free in three years or less. In most cases we can settle your credit card debt downwards by about 40%-60% or more with a single phone call. Call today at 800-890-6658.