Credit Card debt is a sad fact of living in America today. A lot of people decide to take debt solutions into their own hands and pursue credit card settlement. The situation goes like this: Joe Citizen sees he has 15 years left of making minimum payments…and decides to find an easier way out.
This is a really appealing offer now because credit card companies are actually willing to negotiate often, which was not the case before the recession. So at the end of the day…what you need to know is, how do you decide if credit card settlement is right for you?
Pros: It will help you pay off your debt. The main advantage to settlement compared to other debt solutions is that it lowers what you owe.
But before you go this route, think all your options through. It always pays to do your research. Call your credit card company to see figure out their settlement policy. Also, if you decide to attempt your own negotiations- make sure you speak with a consultant first. There are a number of legal traps the credit card companies may set you up for. You will have a hard time going up against these guys, because you won’t know the ins and outs of the industry…nor of the legal effects of attempting settlement. Not to mention you will still need a lawyer to draft the final contract for the settlement.
Remember this: Your credit card company settles at least a few debts every day. This is both good and bad news. The good news is there’s no reason why you can’t be one of the debts settled. The bad news is that because they do it so much…they have become very good at it.
Of course it makes sense from a debt solutions stand point to research the percentage at which your creditor can settle.
But if you don’t have experience in legal negotiations, consider outsourcing this task. Your ideal company should be familiar and confident with the process of settlement, as well as having many past settlements to show as proof of their work. Most of these companies have worked with every major creditor and have a sense of how the internal structure of these companies favors your settlement case.
Additionally, these sorts of debt solutions will help protect you legally. If you do decide to go on your own, make sure you research your company, how they do their write-offs and how they receive settlement attempts.
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