Becoming Money-Smart: Working With A Debt
Settlement Company To Handle Our Credit Card Debt
One of the more popular ways to get out of
debt is to do a credit
card settlement. After all, paying your credit cards of by making just
the minimum payment can take up to 20 years…sometimes more.
However, debt settlement companies can help you deal with the
credit card companies for at least 75 percent of your overall debt and
pay it off in as little as three years.
What Is Debt Settlement?
This is the process is which you negotiate
with your creditors,
convincing them to lower your overall debt that’s owed to them. What
you’re looking to do is convince them that getting some of the money
you owe is better than them receiving nothing if you were decide to
file for bankruptcy or default
on the debt.
are quite a few companies that have settlement services. These places
will negotiate with debtors like Mastercard, American Express or Visa
for you and go through a “re-aging” method. This method will bring all
accounts into current status.
Once you reach a settlement,
you’ll begin making monthly payments to that settlement company who
will then forward your payment to the credit card company until the
debt is completely paid
off. There are several benefits to going with a
debt settlement company:
1 – One payment every month
2 – It’s easier to budget
3 – Your credit rating will improve
are several companies that do debt settlement services. However, you
need to do a little research before you sign up. Bear in mind that
there are good companies and there are not so reliable
Be sure you do the following things before you sign up with a debt
1 – Check with your city or state’s Better Business Bureau to ensure
there have been no complaints.
– Talk with the company’s customer service department. If you’ve got
questions, you want to ensure that you’re happy with the responses you
get and that you can easily reach someone. When searching by the
Internet, you can’t judge them as easily by the website alone.
Use the Internet to do some research. Conduct a Google search for any
reviews for the company. Use those reviews as a guideline.
4 – Check the most recent Consumer Reports issues to locate reviews for
card debt assistance companies.
most important thing you must understand is that debt settlement
requires you become self-discipline. You must make the
payments and you cannot spend that money elsewhere. Most settlement
companies will do a debit from your bank account each month so you
don’t have to remember to make your payment. This works for
folks since self-discipline was not there when the debt increased.
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