Credit Card Debt Settlement Program Explained
A credit card debt settlement is an agreement between a debtor and a creditor to negotiate debt for a reduced percentage of the payoff amount (typically 35%-50% of the total debt).
A credit card debt settlement begins when the creditor agrees to cancel part of the debt and accept the remaining percentage as full payment.
Credit card debt settlement is also known as "credit card debt negotiation".
Consumers who use debt settlement are those who are having financial hardships, and wish to avoid filing for bankruptcy.
Credit card debt settlement programs are provided by debt settlement companies who negotiate settlements on behalf of the debtor.
Typically, credit card debt settlement programs can get individuals and companies debt free in a short period of time.
Benefits of a Credit Card Debt Settlement Program Debt negotiation and debt settlement is an option worth considering because: oYou get out of debt without filing bankruptcy.
You will never have to check the "yes" box to the question "have you filed bankruptcy?" oIt is simpler and quicker (4-18 months) than a Chapter 13 bankruptcy (36-60 months).
oIt is quicker and cheaper than most consumer credit counseling plans.
Credit counseling plans typically last for 3-6 years, and sometimes longer.
oIt is not a public setting.
Everything you do is private.
You will never be required to justify your monthly living expenses to the Bankruptcy Court and a representative of your creditors (the Trustee).
oCredit card debt settlement companies work only for you.
Most credit counseling firms are there to get the best deal the credit card companies can squeeze out of you.
By contrast, loyalties are to you, not your creditors.
Q: Is debt settlement the same as debt consolidation or consumer credit counseling? No.
With credit counseling, you must pay back all of your debt plus interest.
While they will reduce the interest rates from say 20% to about 8 or 9%, you still pay interest.
With consumer credit counseling, you have to pay back 100% of what you owe.
With debt negotiation, you pay back a fraction of what you owe.
Also, Consumer Credit Counselors are paid by the creditors so they are really working for them and not you.
With debt negotiation, we work only for you, not both sides.
Credit counseling can be a good solution if you have less than about $10-$15,000 of debt and the plan they propose fits your budget and is less than 36 months long.
In most cases, consumer credit counseling plans are 4-6 years, and that is too long, and it damages your credit further.
A credit card debt settlement begins when the creditor agrees to cancel part of the debt and accept the remaining percentage as full payment.
Credit card debt settlement is also known as "credit card debt negotiation".
Consumers who use debt settlement are those who are having financial hardships, and wish to avoid filing for bankruptcy.
Credit card debt settlement programs are provided by debt settlement companies who negotiate settlements on behalf of the debtor.
Typically, credit card debt settlement programs can get individuals and companies debt free in a short period of time.
Benefits of a Credit Card Debt Settlement Program Debt negotiation and debt settlement is an option worth considering because: oYou get out of debt without filing bankruptcy.
You will never have to check the "yes" box to the question "have you filed bankruptcy?" oIt is simpler and quicker (4-18 months) than a Chapter 13 bankruptcy (36-60 months).
oIt is quicker and cheaper than most consumer credit counseling plans.
Credit counseling plans typically last for 3-6 years, and sometimes longer.
oIt is not a public setting.
Everything you do is private.
You will never be required to justify your monthly living expenses to the Bankruptcy Court and a representative of your creditors (the Trustee).
oCredit card debt settlement companies work only for you.
Most credit counseling firms are there to get the best deal the credit card companies can squeeze out of you.
By contrast, loyalties are to you, not your creditors.
Q: Is debt settlement the same as debt consolidation or consumer credit counseling? No.
With credit counseling, you must pay back all of your debt plus interest.
While they will reduce the interest rates from say 20% to about 8 or 9%, you still pay interest.
With consumer credit counseling, you have to pay back 100% of what you owe.
With debt negotiation, you pay back a fraction of what you owe.
Also, Consumer Credit Counselors are paid by the creditors so they are really working for them and not you.
With debt negotiation, we work only for you, not both sides.
Credit counseling can be a good solution if you have less than about $10-$15,000 of debt and the plan they propose fits your budget and is less than 36 months long.
In most cases, consumer credit counseling plans are 4-6 years, and that is too long, and it damages your credit further.
