Credit card debt settlement can be a good option for you if you are looking for credit debt relief.
Your debt must be over $10,000 though, and you must have stopped making even minimum payments for more than a couple of months.
So long as you can afford monthly payments, Credit card companies would prefer it if you did not pay off your debt.
They want you to remain in debt to them for as long as possible, so they can earn interest off you.
How else do they make their money? So if you are struggling, and you feel you need credit debt help but you can afford the minimum payments, unfortunately credit card debt settlement is not an option for you.
This is because your creditors will have no reason to negotiate with you.
They do not care if you are struggling.
In fact they will happily try to intimidate you if your payments are in arrears for a month or so.
They hope they can force you through fear to start paying again.
It does not bother them if they make your life a misery.
But if circumstances have got beyond your control, and you have no way of paying in the foreseeable future, your creditors will probably agree to some kind of negotiated settlement where they accept less than the full amount of the debt.
They would rather do this than force you into bankruptcy, where they will lose all their money.
Sadly, it is true that they still make a huge profit when they write off 40% of your debt - as they might do, depending on the negotiation.
Your settlement will be negotiated for you by a company offering credit card debt services.
Some of them have been in existence for a while, and they bring a lot of business to the creditors, which is why they can negotiate a good deal for you.
A professional company will look at your debt, your income and assets, and your commitments - including rent if you are paying it, food, utilities, medical bills, child education etc.
Together with you they will create a realistic payment plan which will be affordable, based on whatever debt amount they believe they can negotiate with your creditor.
This can be as low as 50% but is more likely to be 60%.
A time period will be agreed on with you, and it should be as short as possible.
There are three things you need to remember.
The first is that while your debt is being negotiated, you are still vulnerable to being harassed by collection agencies.
The second is that you will have to pay the debt settlement company - which payment can and should be negotiated, and must be fully understood by you before you sign a contract.
The third is that your credit rating will be negatively affected - but it is already, anyway, and perhaps now it is more important to clear up your debt and gain control of your spending so that you do not have to rely on credit again.
Your debt must be over $10,000 though, and you must have stopped making even minimum payments for more than a couple of months.
So long as you can afford monthly payments, Credit card companies would prefer it if you did not pay off your debt.
They want you to remain in debt to them for as long as possible, so they can earn interest off you.
How else do they make their money? So if you are struggling, and you feel you need credit debt help but you can afford the minimum payments, unfortunately credit card debt settlement is not an option for you.
This is because your creditors will have no reason to negotiate with you.
They do not care if you are struggling.
In fact they will happily try to intimidate you if your payments are in arrears for a month or so.
They hope they can force you through fear to start paying again.
It does not bother them if they make your life a misery.
But if circumstances have got beyond your control, and you have no way of paying in the foreseeable future, your creditors will probably agree to some kind of negotiated settlement where they accept less than the full amount of the debt.
They would rather do this than force you into bankruptcy, where they will lose all their money.
Sadly, it is true that they still make a huge profit when they write off 40% of your debt - as they might do, depending on the negotiation.
Your settlement will be negotiated for you by a company offering credit card debt services.
Some of them have been in existence for a while, and they bring a lot of business to the creditors, which is why they can negotiate a good deal for you.
A professional company will look at your debt, your income and assets, and your commitments - including rent if you are paying it, food, utilities, medical bills, child education etc.
Together with you they will create a realistic payment plan which will be affordable, based on whatever debt amount they believe they can negotiate with your creditor.
This can be as low as 50% but is more likely to be 60%.
A time period will be agreed on with you, and it should be as short as possible.
There are three things you need to remember.
The first is that while your debt is being negotiated, you are still vulnerable to being harassed by collection agencies.
The second is that you will have to pay the debt settlement company - which payment can and should be negotiated, and must be fully understood by you before you sign a contract.
The third is that your credit rating will be negatively affected - but it is already, anyway, and perhaps now it is more important to clear up your debt and gain control of your spending so that you do not have to rely on credit again.
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