Credit Card Settlement Methods

December 15, 2011

Credit Card Settlement

Credit card settlement is one of the best credit card debt eliminations known to man. You can literally wipe out your debt with one payment, which can be as lower as 50 percent less than what you originally owed in the first place. Now the words credit card settlement can bring images of having to go through a settlement company in order to get the settlement process started, but this doesn’t have to be the case. You can actually negotiate a settlement with your company, especially during times when you are having trouble paying and/or not paying at all. Credit card companies actually like dealing with you, the direct source, rather than going through a middle man, as well as are willing to cater to your situation if it has anything to do with wiping out your debt.

credit card settlement

But this situation is a kind of “grass is always greener on the other side” situation, as unfortunately when you pay off your debt, it will come up on your credit score as paid off, but not ”paid as agreed”, which will have a negative affect on your credit score. But if you are not paying at all, you might as well take the hit on your score with settlement, instead of not paying each month and your credit score slowly creeping down.

Credit Card Settlement Companies

Now the above credit card debt settlement negotiation method is the best way of settling debt, which it can come in handy if you happen to have enough money settle your debt with your creditor(s), but often times debt totals get out of hand, and a complete payoff is pretty farfetched. If you still want to enjoy the beneifts of credit card settlement, but doing it your self is not an option, you can employ the likes of a credit card debt settlement company.

When a settlement company settles your debt, they do it by negotiating lower debt total for their customers, which then they will pay off for you, then you will start paying monthly dues to the settlement company. The great parts about it is that you will be paying on a much lower debt total than the original as well as paying on only one lump sum instead of multiple payments, the negative part is that these companies often times charge you with large activation fees, or monthly fees for service. But settling your debt through a settlement company can take up to a year, which you will contiue to get calls and notices about not paying, which it is suggested that you pay the minimum during this time, until your debt is negotiated.

Using credit cards settlement can be a great way to; get out of debt faster and cheaper, stop late fees and interest charges from accumlating on your debt total as well as avoid bankruptcy. It has negative aspects, but the positive aspects out weigh the negatives for those that are in a desperate situation.

If your debt is way out of hand, then hiring a lawyer to do your credit card settlement may be the best option.

You can also consider using credit card consolidation which is a great debt settlement alternative, which you can learn more about the consolidation process by clicking the following link: Credit Card Consolidation.

If you are looking for payoff methods that allow you to get out of debt by yourself and fast, visit the following link which has 7 different debt elimination methods: Eliminate Credit Card Debt.

 

Category: Credit Card Consolidation

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