Credit Card Debt Settlement
The falling US economy has somewhat magnified the credit card debt issues. The level of magnification of the issues and the seriousness of the situation can be well understood by the number of consumers becoming victims of credit card debt every day. Millions of people across the US stand the risk of going bankrupt due to the gigantic pressure of mountainous debt on their shoulders.
No matter how difficult the situation is, finding a way out is always possible with the adoption of the right debt relief procedure. This article discusses the points that you must consider when you’re going for settlement of credit card debt. Credit card debt settlement will ensure you’re free of your credit card debt sooner and without trouble.
Consider the following points to address your credit card debt issues and find the right and fast way out of them.
- Eligibility – You’ll stand eligible for credit card debt settlement if you have more than $5000 in the form of credit card debt. Further, you’ll have to convince the credit card company about your inability to pay off your existing loans. You’ll have to prove that both you and your creditor will be benefitted by the credit card debt settlement process.
- Procedure – Get in direct touch with the credit card company. Tell them about your financial situation and inability to repay the loans. Present a credit card debt settlement plan to the company. You may also hire a debt settlement attorney to carry out the procedures on your behalf if you’re not much sure about things.
- Reduction – The negotiation between the creditor and the debtor/debt settlement company will determine the reduction in your total debt amount. A high reduction in the total debt amount is likely if the creditor finds your situation convincing enough. A reduction of 30%-50% is very common these days. Your debt amount may get substantially reduced to 5%-10% or even suffer a marginal reduction to stay at 90%-95% depending upon the skills used during the negotiation process.
- Working – As seen in a majority of credit card debt settlements, you’ll be required to pay off the settled debt amount all at once. Well, there are a couple of exceptions that are made in this case. There are short payment plans devised for debtors with huge credit card debt amount. Such plans allow you to pay off the settled amount in installments. You’ll be given a duration of 3-6 months to pay off the amount. The other exception, offered by special debt management companies, offers you a period of 1-4 years to pay off the settled debt amount.
- Credit score – Be careful with credit card debt settlement as it may affect your credit score. However, credit card debt settlement will improve your credit score if it has been poor already.
Don’t forget to consider the aforesaid points before you decide to go for credit card debt settlement as a solution to your credit card debt problems. It is only through proper credit card debt settlement methods that you’ll be able to rebuild your credit score.
Credit Card Debt Settlement