Making A Debt Settlement Deal - Credit Card Debt Settlement Tips

Making a debt settlement deal is the wisest thing to do especially during the times of recession

. However, before you go for settlement, there are a number of things that you need to keep in mind. It is not just about getting out of debt...it is about getting out of the trap of unsecured loans in the best possible way...it is about getting the best deal from your creditors. It is because of this reason that you need to keep certain credit card debt settlement tips in mind. This article tries to explain those tips to you.

Tips that are to be kept in mind and followed while opting for settlement are explained in chronological order:

Always remember that the amount of unsecured loan that you have must be at least $10k. This is the minimum amount required in order to get a settlement. If in case, the debt on your individual credit cards is less than that amount, you must try and consolidate the loans on all your credit cards. Here an implicit assumption is that you hold more than one credit card and each one of them have dues on them.

In order to get your unsecured credit card loan consolidated, you can either get a consolidation loan and repay all your cards or you can make use of the option of balance transfer. If balance transfer is what you are looking for, you must select a card which has the lowest interest rate and then ask the creditor to repay all other cards that you have. The creditor will pay off other creditors and the balance due on each card will be carried forward to the card that you selected.

Next thing that you must keep in mind is that you must not go for negotiation by yourself unless you are very well equipped with the knowledge of the banking system or you are a good negotiator. The creditors like the debt settlement companies and prefer the professional approach that these settlement companies have.

Select a settlement company wisely. This is because of the fact that there are a number of companies which are fraud. Avoid them. Also remember that the Federal Trade Commission has put a ban on collection of upfront fees by the settlement companies from the consumers. They can only collect their service fee after they have actually eliminated the debt of a consumer. Any company now asking for upfront fee will be a shady company and you should not trust them!

When you hire a settlement company, reveal all the debt related information honestly and follow the instructions of the negotiator word by word!

Keep these tips in mind when you are looking for debt settlement and these will help you to get the best deal in your favor!

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.

Making A Debt Settlement Deal - Credit Card Debt Settlement Tips

By: Channing Blaine

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