Debt Settlement - How to Settle Credit Card Debt Legally and Ethically

If your credit card debt is enormous, beyond your capabilities

, you are likely to get frustrated. Bankruptcy looks like a straight and simple answer to all your questions and confusions. Either declare bankruptcy to avoid further harassment from the credit card companies and the collection agency or pay off the whole debt amount with nothing left to eat or to wear. Bankruptcy is no better than suicide. Don't give up even in the worst circumstances, if you think carefully every coin has two faces, and the same is true for every situation. With some effort and research you can find a way out of the credit card debt also.

Debt settlement is a negotiation on the debt you owe to the creditor. You can try it on your own, give a call to your creditor and explain the situation. Make a commitment to pay if the debt amount is reduced. There is no harm in trying, who knows, the creditor might agree for a reduction and you gain back a debt free status. However there are equal chances of getting the request rejected. You might be a victim of circumstances and be refused of assistance in any form. You may then require a settlement company as an intermediate.

Debt settlement companies talk to the creditors on your behalf and try to negotiate the debt you owe. Before you start with a settlement program, make it a point to check if the company has legal rights to practice trade in your state.

The federal trade commission has found several debt settlement companies practicing illegal trade and canceled their license in the respective states. In fact these companies are not allowed to exist legally in states like Mississippi, Arizona, Georgia, Hawaii etc. The Attorney General's Office is a relevant place to check this.

Trade Associations like United States Organization for Bankruptcy Alternatives and The Association of Settlement Companies list information about the settlement companies and whether their business is in adherence to industry standards.

Make sure the company shows in the Better Business Bureau website and carries a logo of BBB on its website; this is to confirm it is accredited by a reliable source.

Do not hesitate to confirm the officer handling your debt in a settlement program is certified by the International Association of Professional Debt Arbitration.

For the millions of Americans who are at least $10 k in unsecured debt, it would be financially prudent to consider the debt settlement option. Creditors are very worried about collecting their debts and legitimate debt settlement companies know exactly what methods to use to get your creditors to agree to eliminate a certain percentage of your unsecured debt.

Debt Settlement - How to Settle Credit Card Debt Legally and Ethically

By: jerryarcher

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