Settling Credit Card Debt

– Not A Big Deal, Is It?

By: - Debt Consolidation - March 24, 2011
settling credit card debt

Credit cards have now been in the market since quite a while. Also there are many credit card companies which hire representatives who directly approach customers in order to offer them various lucrative benefits of having a credit card from them. At first you find having a credit card quite convenient and useful. However, another thing that comes along with a lucrative and golden paper wrapped credit card is a huge amount of debts which are sometimes quite hard to be paid back by you.

There are many ways that can be used for settling credit card debt. A few of them are as below:

In order to eliminate credit card debt you can hire any debt settlement company which has highly skilled professionals who are specialized in these kinds of cases. However there are a few pros and cons while hiring the services of these debt settlement and companies, which are:

Pros:

Whenever you hire the services of any debt settlement company in order to eliminate credit card debt, you do not have to worry about anything and also you do not have to directly interact with your creditors. These companies interact with the creditors on your behalf instead. This saves you a lot of time and mental harassment which you might face when you directly communicate with your creditors.
Since the professionals associated with any debt settlement company are highly skilled they know the exact process as how to get rid of your creditors in order to get you out of the trap.

Cons:

It can be understood that since these debt settlement companies are providing services in order to help you settling credit card debt they charge approximately 15% to 20% of the total amount you owe to your creditors.
Apart from the above percentage, you need to pay the attorneys associated with debt settlement companies a monthly fees for the services they provide you to help you eliminate credit card debt.
Another way of settling credit card debt may be that you can try to manage the things on your own. This means that you do not have to hire any company in this regard and you can start making communication, on papers, with your creditors and try to prove that you are not capable of paying back the debt on time. In addition to this you can pay them a small amount of money and can prove that you have gone bankrupt and so you will not be able to pay any further amount. This process will help you eliminate credit card debt on your own.

Drawbacks of Settling the Depths of Your Credit Card

No doubt with the help of above methods you can get rid of your creditors by paying them either very little or absolutely no money at all. However there are a few downsides of doing so. The main downside is that you will never be able to get any loans or credits from any other organizations once you are rated badly because of non-payments. Even if you manage to get the loans from any company, rate of interest will be quite high.

Therefore, it is recommended that you should remain in your budget while using your credit cards as nothing is better than having no debts on your head at all.

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