Do I have a legal right to settle my credit card debt?
While credit card debt settlement firms may assert otherwise, settling a credit card debt does not involve a legal secret.
Credit cards are contracts between consumers and credit card companies. These contracts can be legally modified if both sides mutually agree to the changes. According to the Credit Card Debt Survival Guide, for the consumer the most important LEGAL feature of a credit card debt settlement is getting the negotiated debt amount and the terms in writing and signed.
Can you settle a credit card debt without being late in your payments?
The short answer is NO. Banks will not settle with consumers who are not late in their payments. If they did, they would open up the floodgates to every credit card account holder seeking credit card debt relief.
To settle a credit card debt for less than full value with the bank, a consumer will have to risk not making monthly credit card payments, then save those payments for a lump sum settlement. The risk comes from being in arrears and having the bank not agree to the lump sum amount.
How much of a balance reduction do credit card companies usually settle for?
On Internet consumer forums you can read of individuals negotiating credit card debt down to 20 to 70 percent of the current balance. Credit card banks prefer dealing directly with consumers rather than going through debt settlement companies, according to Charles Phelan, a debt settlement trainer. He also says consumers who negotiate on their own get the best settlements.
For a debt reduction agreement initiated by a consumer to work, credit card debt banks want consumers with real hardship issues like low income, job loss, family death, medical catastrophe, etc. The best time to settle, according to the Credit Card Debt Survival Guide, is right before the bank charges off the account. This usually happens six months after payments stopped. During this period, banks sometimes contact the consumer and offer to reduce the balance. - 31377
While credit card debt settlement firms may assert otherwise, settling a credit card debt does not involve a legal secret.
Credit cards are contracts between consumers and credit card companies. These contracts can be legally modified if both sides mutually agree to the changes. According to the Credit Card Debt Survival Guide, for the consumer the most important LEGAL feature of a credit card debt settlement is getting the negotiated debt amount and the terms in writing and signed.
Can you settle a credit card debt without being late in your payments?
The short answer is NO. Banks will not settle with consumers who are not late in their payments. If they did, they would open up the floodgates to every credit card account holder seeking credit card debt relief.
To settle a credit card debt for less than full value with the bank, a consumer will have to risk not making monthly credit card payments, then save those payments for a lump sum settlement. The risk comes from being in arrears and having the bank not agree to the lump sum amount.
How much of a balance reduction do credit card companies usually settle for?
On Internet consumer forums you can read of individuals negotiating credit card debt down to 20 to 70 percent of the current balance. Credit card banks prefer dealing directly with consumers rather than going through debt settlement companies, according to Charles Phelan, a debt settlement trainer. He also says consumers who negotiate on their own get the best settlements.
For a debt reduction agreement initiated by a consumer to work, credit card debt banks want consumers with real hardship issues like low income, job loss, family death, medical catastrophe, etc. The best time to settle, according to the Credit Card Debt Survival Guide, is right before the bank charges off the account. This usually happens six months after payments stopped. During this period, banks sometimes contact the consumer and offer to reduce the balance. - 31377
About the Author:
Matt Highlander wrote the Credit Card Debt Survival Guide. If you are searching for credit card debt relief, read about proven strategies for settling debts and handling debt collectors as well as collection attorneys.
