Thursday, August 11, 2011

All about credit card settlement

Owning a credit card is the trend nowadays. Almost everyone owns one. For some, it is a symbol for status in life; if you have a credit card then people will think that you are well-off because a credit card company has allowed you to have one. Well, basically credit card is a form money owing. It allows the holder to buy goods and avail services based on the holder’s promise to pay for these goods and services.

Credit cards are very convenient to use but eventually, you have to limit and control yourself in using it. Time will come that you have to pay all those goods and services and you won’t be able to pay on time. How do you really go about credit card debt settlement?

In settling credit card debt, you have to get a creditor or a collection agency that will accept half payment of the debt. You should stop making your credit card payments on time. Almost all credit card companies settle when they think that if they don’t make a deal, they won’t be able to be paid with the money that you owed them. You should ignore threats of lawsuits. Do not be threatened or be pressured with their threats. Most of the credit card companies do not pursue in filing a lawsuit. That’s just too much effort. You should make an offer. Make an offer that is not more that 25% of the debt. Do not make an offer that you cannot afford and expect that your first offer will be turned down. You should get all deals in proper writing. Make sure that the person that you are negotiating with really has the authority to do so. In this way, you will be sure that the payment you are going to make is really going to settle your credit card debt. 

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