What Is Credit Card Debt Settlement?
If you have too many credit card bills and are struggling to pay them credit card debt settlement can be a practical solution for you. The average American household has just over $15000 in credit card debt and of course it is all too easy for even those who cannot afford the payments to be approved for credit.
Settling your debts means contacting your card issuers to try to negotiate better terms and these can include a lower interest rate lower monthly payment amount or a lump sum payoff amount. Most card issuers would rather work with their customers than have the loan be defaulted on and a common option is to allow the customer to pay a lump sum for a lower amount than that which is still owed to close the account. if you agree to do this the account is considered closed and paid as if you had paid the full amount owed.
Although you can negotiate with your credit card issuer yourself you may have more luck if you use the services of a professional debt consolidation company. Their role will be to contact your creditors and negotiate some kind of better terms and settlement; they will do the same for other unsecured debts such as consumer loans and store credit.
The big advantage of DeDebt credit card debt settlement site is that you end up with lower payments allowing you to pay off the outstanding amounts. This also looks better on your credit report than simply not paying the bill and getting further behind. It also means that your credit card issuer will stop calling you asking for payment once they have agreed to participate in the plan.
Being part of a debt settlement plan can save you time too. If you have several different creditors you will usually write just one check each month and send it to the debt settlement company who then distributes the amounts for you. You can track your payments outstanding balances and progress made and most debt negotiation companies offer direct debit from your bank account making the process even easier.
However it is important to keep up with the payments; your debt consolidation company can withdraw from the plan if you are late with even just one payment. It also means that you won’t be able to use your credit cards although of course that may be a blessing in disguise. Click here if you want to read more helpful information.