subject: Precautions Before Implementing A Credit Card Debt Elimination Program [print this page] Ahead of investing any more of your time and effort, you should consider if debt settlement
is the right option to choose for you. Do you have a legitimate financial adversity?
Financial adversity comes in the form of a chronic medical condition, loss of work, loss of child support payments, loss of earnings, death of a family member, marital separation, divorce, or some other identifiable grave event that caused your financial crisis.
Are you staunchly committed to getting out of debt and / or avoiding bankruptcy? Only with a faithful desire and commitment can you execute a credit card debt elimination strategy and get out of debt for the rest of your life.
Do you have more than $15,000 in debt that is not secured? If you do, debt negotiations may be right for you.
Credit card debt is very well suited to debt settlement. Debt settlement has a very successful history when applied to credit card debt.
Can you get your hands on enough money for debt settlement? Can you put away and / or borrow from friends and family enough cash to settle your debts? In order to settle your debt you are going to need a certain amount of funds available to you.
If you don"t have the money now, you can save the money needed as you go through the debt settlement process.
There are two major pitfalls you want to avoid if you decide that you want to settle your debts:
1. Set off a creditor to send your file immediately to their lawyers.
2. Not settling the debts yourself. When you sign up with a debt settlement company they usually will ask you for a limited power of attorney; that allows them to legally represent you during negotiations with your creditors.
In many cases this elevates an internal flag with your creditors who will in very short order dispatch your credit file to their legal department to start legal proceedings, which is the worst case scenario.
Join this with the truth that there are so many deceptive debt settlement companies springing up out of nowhere, you can only conclude that the best opportunity is to settle your debts yourself by negotiating directly with your creditors.
