subject: Credit Debt Relief Options - How To Negotiate And Settle Credit Debt [print this page] Credit Debt Relief Options - How To Negotiate And Settle Credit Debt
Are you thinking of trying to settle with your credit card companies? Are you thinking of doing it yourself?
My first response would be are you nuts! While negotiating on your credit debt is an outstanding thing to do, trying to do it yourself just makes no sense at all. First, do you know all the laws? Secondly, those people are mean. Really mean and they make their living being mean. They may promise you the moon and you send them your hard earned money and they claim they never said what they said. They will just keep harassing you for the remainder of the money.
Your other choice is to hire a professional. Your first decision should be which company to hire. This may involve asking friends who they used. Find out if the company is licensed in your state. Call the Attorney General office and ask if complaints have been filed against the company that you are considering hiring and how those complaints were handled. Call the Better Business Bureau and ask if they have a score for that company.
After you have decided which company to hire then the process becomes much simpler. The professional will work with you to decide which type of debt settlement is right for you. They will also help you set up a plan that you can handle to pay off your debt. They will also make payments to the credit card companies for you. They will negotiate for you to pay less of the debt and yet have it considered paid in full.
The professional will probably recommend one of three plans based on your individual circumstances. They are credit settlement which allows you to pay off your debt at 50% of what you owe. Credit consolidation allows you to consolidate all your bills into one monthly payment. Credit consolidation loan is a loan where you put up collateral to secure a loan large enough to cover your debt. Such collateral may include real estate. You then make the payment on the loan usually at a lower interest rate. If you fail you can lose your collateral.
Now isn't that sweet! A professional debt negotiator is worth their weight in gold.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
