Consumers who are overwhelmed by credit card debt turn to a variety of methods to eliminate that liability. Some have found relief by negotiating directly with credit card providers to change their agreements. The common term used in contract law regarding debt elimination is "novation," which involves substituting an old contract with a new one, effectively canceling the original debt.
Novation
Novation can work only if each of the parties involved agree to changes in the original contract. Contact your creditors and see if they will discuss changing your terms. Depending on your situation, a creditor might agree to reduce your overall debt, your interest payments or both.
Credit Report
If you reach an agreement with your creditor, ask them to remove any negative information they may have included on your credit report. Request that your account be listed as "paid in full" instead of "paid in settlement"; the latter will reflect that you settled your debt for less, a warning flag to other creditors when it comes to lending to you.
Warning
If you decide to seek help with debt relief, verify that the service is allowable by law, no matter what the person promising you relief may claim. When it comes to debt-elimination services, the old adage "if it sounds too good to be true, it probably is" should be applied in most situations.
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