Card Credit Debt
Choosing A Card Credit Debt Negotiation Settlement Agency
Whatever your reason for using a card credit debt program or settlement agency, it is very important that you select a reputable one.
Be aware that there are countless advertisements
out there that make all sort of impossible claims of being able to eliminate credit card debt totally. It is equally impossible for any credit card debt negotiating settlement agency to achieve that.
There are a number of important considerations when choosing a credit card debt settlement agency. Don't ignore these, -
they can make all the difference between success and failure when using this credit debt reduction strategy.
Be sure to ask as many questions as you possibly can. Write down a list of things you want answers to, before making contact with a debt settlement agency. Here are a number of issues you must explore and receive satisfactory answers to:
It is always best to use personal recommendations from trusted sources to choose an established card credit debt negotiation settlement agency that has a track record of debt settlement - verifiable credentials: stay well clear of any debt settlement agencies with premium lines: those
who charge commissions: or are not willing to give you a
money back guarantee, if you change your mind for up to 30 days
Don't be fooled by the too good to be true low fees offered by some card credit debt negotiation settlement agencies. Very low fees may well equal - no to low reputation. Check the debt settlement agency's fee structure: fees should be on a performance and resuls basis - not just on the debt percentage
Make sure any credit debt negotiation agency belong to an association such as Better Business Bureau, the Consumer Recovery Network or The Association of Settlement Companies (TASC)
Debt settlement agencies that are members of TASC have agreed
to comply with a set of stringent standards
Ascertain the agency's credit debt reduction strategy
during the life of your debt settlement agreement: What percentage of your monies will they give you back if they have not paid any of your debts/you leave the leave the program: what percentage of fees will you be charged?
Be clear about the debt negotiating settlement agency's strategies regarding the extent of their responsibility to you in dealing directly themselves with your creditors i.e. mail and calls etc., Note: card credit debt negotiating
settlement agencies cannot prevent any creditors contacting you. What they can do, is request your lenders to deal directly with the agency
You can find out more information about credit card debt negotiation and settlement, to help you decide if this debt reduction strategy is really right for you.
While credit debt negotiation settlement can seem like a lifeline to many people, do bear in mind that during the debt reduction process, if any of your creditors so wished,
they could sue you. In this sense, debt negotiation settlement
is risky, but no more than if you did not attempt to deal with your debt. Remember, creditors are often willing to negotiate
even when the amount is small, rather than risk getting nothing.
For the above reason, debt negotiation settlement is not suitable
if you have a small to moderate amount of debt that you could clear within a 1-3 year period. Do also bear in mind that in pursuing this credit card debt reduction strategy, creditors
will obviously become aware of your credit card credit hardship, which can stain your credit score.
The content on this site is purely for information purposes only and is not intended to replace your seeking professional financial advice.
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