Is there a legal secret to settling credit card debt?
While credit card debt settlement firms may assert otherwise, settling a credit card debt does not involve a legal secret.
Credit cards are contracts between consumers and credit card companies. These contracts can be legally modified if both sides mutually agree to the changes. According to the Credit Card Debt Survival Guide, for the consumer the most important LEGAL feature of a credit card debt settlement is getting the negotiated debt amount and the terms in writing and signed.
Can you settle a credit card debt without being late in your payments?
Credit card companies will only settle with those consumers who have missed monthly payments. If the banks negotiated debts with current account holders, most consumers would want to settle for less than the full amount.
As far as credit card accounts go, consumers fall in to two categories; those who can pay the monthly minimum, and those who cannot. For those who can pay and who want to settle for less than their full balance, they must risk not making their monthly payments and then banking that money for a lump sum settlement.
What percentage of the balance will a credit card company settle for?
On Internet consumer forums you can read of individuals negotiating credit card debt down to 20 to 70 percent of the current balance. Credit card banks prefer dealing directly with consumers rather than going through debt settlement companies, according to Charles Phelan, a debt settlement trainer. He also says consumers who negotiate on their own get the best settlements.
When approaching a bank for a debt settlement, a consumer must present a convincing case with low income, damaged credit and legitimate hardship issues. According to the Credit Card Debt Survival Guide, credit banks are mostly likely to settle for the lowest amount of money and may offer to settle right before the account charges off, which is usually around six months of arrears.
While credit card debt settlement firms may assert otherwise, settling a credit card debt does not involve a legal secret.
Credit cards are contracts between consumers and credit card companies. These contracts can be legally modified if both sides mutually agree to the changes. According to the Credit Card Debt Survival Guide, for the consumer the most important LEGAL feature of a credit card debt settlement is getting the negotiated debt amount and the terms in writing and signed.
Can you settle a credit card debt without being late in your payments?
Credit card companies will only settle with those consumers who have missed monthly payments. If the banks negotiated debts with current account holders, most consumers would want to settle for less than the full amount.
As far as credit card accounts go, consumers fall in to two categories; those who can pay the monthly minimum, and those who cannot. For those who can pay and who want to settle for less than their full balance, they must risk not making their monthly payments and then banking that money for a lump sum settlement.
What percentage of the balance will a credit card company settle for?
On Internet consumer forums you can read of individuals negotiating credit card debt down to 20 to 70 percent of the current balance. Credit card banks prefer dealing directly with consumers rather than going through debt settlement companies, according to Charles Phelan, a debt settlement trainer. He also says consumers who negotiate on their own get the best settlements.
When approaching a bank for a debt settlement, a consumer must present a convincing case with low income, damaged credit and legitimate hardship issues. According to the Credit Card Debt Survival Guide, credit banks are mostly likely to settle for the lowest amount of money and may offer to settle right before the account charges off, which is usually around six months of arrears.
About the Author:
Matt Highlander researched and wrote the Credit Card Debt Survival Guide for consumers seeking to educate themselves about credit card debt relief.
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