subject: Credit Debt Relief: Who To Use For Credit Card Debt Settlement [print this page] Credit Debt Relief: Who To Use For Credit Card Debt Settlement
If you need credit debt relief because you have not been able to make payments on time or at all, you have a number of options. The first one is to try and speak to your credit card company and negotiate with them for a lower rate of interest so that your minimum payments can be reduced. Credit card debt settlement might be your option.
Some might suggest that you take out another loan to cover your debt, and put your house down as collateral, but this is probably the worst idea, and it is not really a solution. If you find that you cannot pay the mortgage, you lose your home. A far better option is to look for another credit card company which is offering lower rates of interest, and either use that as a negotiating tool with your own credit company, or move all your debt over.
If neither of these options are suitable, you can use credit card debt settlement, which involves a professional credit debt help company who will negotiate on your behalf with your creditors. Their aim is to get your creditors to agree to reduce your debt drastically so that you can actually pay it off within a reasonable time frame. Creditors are agreeing to negotiate this way because they are at least assured of getting some money back, and they want to prevent you from having to file for bankruptcy.
Negotiating with a credit card debt settlement company may require that you have a sum of cash, but if this is the case and you do not have it, the company can set up a third party trust account for you. You will pay into it over time until you have enough funds for the settlement process to proceed.
It is very important that you pick your debt settlement company carefully. One way of making sure you use one with good standing is to check whether they are a member of TASC, which is The Association of Settlement Companies. This association was founded for the purposes of protecting the interests of debtors from debt settlement companies who are unethical.
TASC protects debtor consumers by encouraging firms ethics and a high standard of service amongst its member debt settlement companies. Through consultation with debt settlement companies, major lenders and law makers, it has developed a set of bylaws regarding ethical business practices. All members have to be able to show that they abide by these laws and subscribe to the ethics and standards set out in them.
You must be aware that there are individuals who pose as consultants to various firms. They take your money and you never hear from them again. Before you part with a cent of your money, check up on references, and make sure that who you are dealing with is authentic. Never make impulsive decisions, and never let yourself be persuaded over the telephone. Always go away and think about your options, and if possible talk to a friend or mentor before making a decision.
