If you have credit card bills that are mounting each month, you need a good solution. It is easy to miss a monthly payment and eventually have to pay twice as much on the bill. There are debt settlement companies willing to help you in this situation. First, figure out how debt settlement companies negotiate credit card debt. Then, find out whether or not you need one of these companies to manage your bills.
Debt settlement providers are available to help you settle debts. In addition, these professionals encourage you to improve your savings. A typical settlement is just a lump sum that is not the original amount that was agreed upon. A new budget is created to suit your affordability. Each month, you are encouraged to save for the next few years. It is important to work closely with a settlement provider who you can actually understand and trust.
Get the right settlement with the help of professionals. Reduce the payment and interest rate that you pay every month. When you have money to pay, avoid the late fees or overcharges. The catch is that you no longer have access to a high credit line. Also, your credit rating may suffer with this arrangement. Overall, you make affordable payments, but you have reduced access to credit.
Cut Debt in Half
Cutting your debt in half is possible. Settling debt is designed if you have extreme hardships like:
- lack of employment
- medical issue
- inadequate savings
As a debtor, you have rights and can cut bills in half; however, your credit score is affected. Also, debt settlement providers take in a percentage of the negotiated settlement.
Offer a Lump Sum
One way that you can negotiate is to offer to pay a lump sum. Have a professional inform the credit card company that not settling could lead to bankruptcy. Give a lump sum that is half or less than half of the total debt. Pay as much as 20 to 50 percent of the total fee. Pay a lump sum whenever you can as part of a good negotiation.
Agree Not to Involve a Collection Agency
Request that your credit card company does not get the collection agency involved. That means having to sell off your debt before or after you make a settlement. If the debt is sold, you have to pay additional fees and get a bad credit report. So, agree to pay off the rest of the balance right away without getting it sold.
If you are drowning in credit card debt, find a company willing to guide you to a better way. There are many people with severe credit problems who do not know where to turn. You do not have to settle for bankruptcy. Instead, work with a credit card company by drawing up a negotiation. With the help of a debt settlement company, create the best deal to pay off all of your bills. Need help, contact Rescue One Financial!