subject: Legally Settle Credit Card Debt - What Credit Card Companies Don't Want You To Know [print this page] Legally Settle Credit Card Debt - What Credit Card Companies Don't Want You To Know
There are several factors which the credit card companies do not want the consumers to know. This is because, if the consumers come to know these fact, it can be detrimental to their business. However, it is the right of the consumers to know those factors. These factors are mentioned below:
There are several charges and hidden costs involved in the credit card usage. These charges are for insurance and other stuff which the consumers do not avail but yet they pay for those things. The consumers do not know how to claim to coverages when any mishap happens and the companies do not come to help the consumers voluntarily.
The minimum amount that you pay every month is pure profit of the creditors. These minimum payments are payments towards these hidden charges and other costs. The payment of minimum amount due never reduces the principal balance but the consumers think that they are actually paying to reduce their principal balance.
The creditors do not want the consumers to know about debt settlement. This is because of the fact that if the consumers come to know about this method of debt elimination, the creditors will be forced to accept the deals. If the creditors accept settlement deals, they incur loss. This is what the creditors do not want and hence, they use the help of collection and threatening calls to get the money as soon as possible.
As a consumer, it is time that you know your rights and make proper use of those rights to avoid debt problems and if you are already in problem, know your rights and go for settlement with the creditor.
With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.
