Debt Settlement Companies
Debt settlement companies provide the service of acting as an intermediary between a consumer and their creditors in order to satisfy the outstanding debt for a negotiated lower settlement cost.
Debt settlement companies are very popular these days with the high amount of credit card debt held by Americans during an economic recession. Many credit card holders are looking for drastic ways to quickly reduce their credit card debt.
A good debt settlement company should have a high Better Business Bureau rating. Consumers should check with the BBB before signing any contract for services.
The debt settlement company should act as an intermediary for collection actitivities instigated by the credit card company on behalf of the consumer. Many unscrupulous debt agencies simply take the consumer's money and attempt to make a settlement over time, yet ignore collection calls.
A good debt settlement company should have legal representation available for the consumer.
A good debt settlement company should have a certain percentage of all money paid by the consumer going to the credit card company rather than to their own fees and commissions. Consumers have a right to know these amounts and have them in writing as part of a contract of services. Further, fees for service should not be greater than if the consumer had negotiated the debt settlement themselves or paid their normal monthly rates.
Consumers should carefully research any debt settlement company before agreeing to contractual services.
Showing posts with label debt settlement plan. Show all posts
Showing posts with label debt settlement plan. Show all posts
Thursday, July 1, 2010
Tuesday, June 29, 2010
Debt Settlement Plan
Debt Settlement Plan
Debt Settlement Plans are popular these days. Turn on the radio or television and the ads for debt settlement companies are everywhere. It makes sense; the economy is tough and consumers have a great deal of debt. Settling credit card debt seems like a good idea.
Before making the call to a debt settlement company, make a debt settlement plan. Here's what to do:
- To settle an outstanding credit card debt, consumers need money. Like the chicken and the egg, it was a lack of sufficient money which put the credit card holder into hot water. If the problem is complete lack of money and the inability to bring in income, another option, like bankruptcy may be better. For debt settlement, the consumer needs a source of income and savings in available cash to pay an offered settlement.
- Is the account four or more months behind? Most credit card companies will not accept a settlement offer unless card payments are four or more months behind. Generally speaking, the account has to be in danger of going to charge off or to an outside collections agency. If current with credit card accounts, then asking for a lower interest rate or payment plan based upon lower income may be a better solution.
- Be ready for collections. To get a debt settlement offer accepted, it takes time. During this time the card may go to charge off and collections activity. Calls may come from a special department with the credit card company or worse, may come from an outside collection agency. Outside agencies are more likely to make a settlement with the card holder, however, many consumers don't like to deal with outside companies and would rather deal with the original creditor.
Before calling any advertised debt settlement company, have a debt settlement plan in place first.
Debt Settlement Plans are popular these days. Turn on the radio or television and the ads for debt settlement companies are everywhere. It makes sense; the economy is tough and consumers have a great deal of debt. Settling credit card debt seems like a good idea.
Before making the call to a debt settlement company, make a debt settlement plan. Here's what to do:
- To settle an outstanding credit card debt, consumers need money. Like the chicken and the egg, it was a lack of sufficient money which put the credit card holder into hot water. If the problem is complete lack of money and the inability to bring in income, another option, like bankruptcy may be better. For debt settlement, the consumer needs a source of income and savings in available cash to pay an offered settlement.
- Is the account four or more months behind? Most credit card companies will not accept a settlement offer unless card payments are four or more months behind. Generally speaking, the account has to be in danger of going to charge off or to an outside collections agency. If current with credit card accounts, then asking for a lower interest rate or payment plan based upon lower income may be a better solution.
- Be ready for collections. To get a debt settlement offer accepted, it takes time. During this time the card may go to charge off and collections activity. Calls may come from a special department with the credit card company or worse, may come from an outside collection agency. Outside agencies are more likely to make a settlement with the card holder, however, many consumers don't like to deal with outside companies and would rather deal with the original creditor.
Before calling any advertised debt settlement company, have a debt settlement plan in place first.
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