What Is Credit Card Debt Settlement?
Credit card debt settlement is what happens when credit grantors decide that it is in their
best interest for them to close a deal with you for less than the full price of the debt owed.
Now, why are you a good candidate for this? And, how can you get a credit card debt
settlement from your credit grantor? These things all have to do with what your credit
history is as well as what your current status is to that credit grantor.
Often times you will need to contact a professional company to work on your behave to
get your credit card debt settlement. But, you can work with many of the lenders yourself.
Simply call them and ask them if you paid x amount of dollars, would they accept that in
full. Now, why would any credit card company accept a payment that is smaller than
what you owe them?
There are many reasons why a credit card debt settlement can be used. The most
important reason that credit grantors do this, though, is simply because it is in their best
interest. For example, let’s say that you are on the verge of becoming behind on many of
your payments for credit cards. Your credit score is falling and you are struggling to
maintain your payments at all. You may find yourself failing at credit counseling as well.
If you owe ABC credit grantor $6000, for example, and they know that you are
struggling to make payments, they may decide to offer you a credit card debt settlement
for say, $3500 instead. But, they are doing this because, in their view and history, they
realize that you are only steps away from filing bankruptcy.
It is important to know that credit card debt settlement is only offered to consumers that
are on the verge of filing bankruptcy or look as if they are. Most grantors know that if
the bankruptcy goes through they will likely not get anything. But, it looks better than
bankruptcy on your part. For example, if you pay off through a credit card debt
settlement, other lenders will see that at least you did pay it off and not filed it under
bankruptcy. While you are a risk nonetheless, it is a better risk. Find out if credit card
debt settlement will help you to pay off your credit cards.
