CREDIT CARD DEBT SETTLEMENT
Debt Settlement is only ONE option to consider but you will also want to look at our latest program which COSTS YOU LESS if you qualify and does NOT negatively impact your credit.
Credit card debt settlement can be a very smart choice for getting out of debt. If you are in a position where you can’t afford to keep up with your credit card payments, debt settlement can be a good answer.
If you are unfamiliar with credit card debt settlement before, it is important that you get the facts and understand the different elements of this program. It is best to get all your questions answered with the help of one of our certified Credit Counselors. We can pull your credit and evaluate your specific debt situation and explain how we can help. Our trained counselors can make debt settlement an easy experience.
Understanding Debt Settlement: Pros and Cons
What is credit card debt settlement? This form of debt relief is one option to bankruptcy or falling deeper and deeper into debt from all the late fees. It involves using an experienced professional to negotiate directly with your creditors in an effort to help you get credit card debt-free from credit card debt as quickly as possible. Using a knowledgeable debt settlement specialist can give you the following advantages:
- For those who complete the program, they settle their credit card debt amount by 40%-60%, allowing you to get out of credit card debt more quickly
- Inform and educate you about the Fair Debt Collection Practices Act
- Educate you on Credit Card Debt and how long it takes to pay off using the minimum payment feature
While credit card debt settlement is attractive to those looking for an alternative to bankruptcy, it is not without its downsides.
HOW DEBT SETTLEMENT WORKS
Eliminate Credit Card Debt
This debt relief strategy is for individuals who cannot afford their minimum monthly payments and want to eliminate credit card debt. Instead, you save your “payments“ in a special account. When that amount approaches 20% of one of your account balances, your debt settlement negotiator contacts your creditor and offers to settle for that lump sum on the spot.
While this option to eliminate credit card debt is effective, there are challenges you have to face when using this bankruptcy alternative strategy:
- Credit card debt settlement involves savings money because the minimum payments have put you into a financial hardship. This results in late and delinquent payments on your credit report.
- There is a potential that you will be sued during the nonpayment period. However, many people who choose credit card debt settlement as one option to bankruptcy are already missing payments and risk this anyway.
- If the portion of your balance your creditor writes off as unpaid is greater than a certain amount, the IRS may treat that “savings“ as income and require you to pay taxes – but only if you are financially solvent at the time of the settlement (which many people are not when they get to the point that credit card debt settlement is a necessity).
To eliminate credit card debt through settlement has short-term negative effects, it is an acceptable option for those set on a different option to bankruptcy as a means to get out from the load of their heavy debt burden. It can also ideal for those who keep missing minimum monthly payments and are being burdened by higher interest rates and ongoing late fees.
Credit Card Debt Relief Through Settlement – What Qualifies?
The following types of debts can be resolved using a debt settlement negotiator:
- Credit Cards
- Unsecured Loans
- Unsecured Personal Loans
- Unsecured Personal Lines of Credit
- Collections and Autos in Repossession
- Collections and Autos in Repossession
However, not every type of debt is eligible for debt relief. These types of debts must be resolved in a different way:
- Lawsuits, IRS Debt and Unpaid Taxes
- Utility Bills and Auto Loans
- Government Loans
- Student Loans
- Secured Debts
- Home Loans / Mortgages
Evaluate All Debt Relief Options Before Choosing Debt Settlement
To eliminate credit card debt through settlement is not for everyone. It is typically for people who are experiencing a “hardship“, or a situation where someone cannot continue to pay on his obligations but is set on another option to bankruptcy and protecting his or her assets.
There is no easy way out, but there are different ways than bankruptcy or even ignoring the situation. Credit card debt settlement may be the option that best meets your particular long-term needs. Contact one of our debt counselors now at 1-888-521-0737, and discover if this form of debt relief is the right choice for you