Is there a legal basis to settle credit card debt?
Contrary to debt settlement firms advertising the SECRET credit card companies do not want you to know, there is no secret to legally settling credit card debt.
Unsigned, credit card agreements are contracts between the credit card bank and the applying consumer. Like any contract, these contracts can be lawfully edited with the agreement of both sides. The most important legal aspect of negotiating credit card debt for the consumer, according to the Credit Card Debt Survival Guide, is getting the settlement and its terms in writing.
Can I settle my credit card debt while still making payments?
No you cannot do that. Just like mortgage banks, credit card banks will not negotiate with consumers who are current with their monthly payments. Otherwise, they would be losing money to everyone seeking to negotiate their credit card debt.
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.
What percentage of the balance will a credit card company settle for?
Online consumer forums have stories of consumers settling for as little as 20 and as much as 70 percent of their credit card account's original balance. According to credit card debt settlement expert Charles Phelan, consumers who settle on their own get the best settlements. Phelan also says credit card companies would rather deal directly with a consumer, rather than go through a debt settlement firm.
When approaching a bank for a debt settlement, a consumer must present a convincing case with low income, damaged credit and legitimate hardship issues. According to the Credit Card Debt Survival Guide, credit banks are mostly likely to settle for the lowest amount of money and may offer to settle right before the account charges off, which is usually around six months of arrears. - 31377
Contrary to debt settlement firms advertising the SECRET credit card companies do not want you to know, there is no secret to legally settling credit card debt.
Unsigned, credit card agreements are contracts between the credit card bank and the applying consumer. Like any contract, these contracts can be lawfully edited with the agreement of both sides. The most important legal aspect of negotiating credit card debt for the consumer, according to the Credit Card Debt Survival Guide, is getting the settlement and its terms in writing.
Can I settle my credit card debt while still making payments?
No you cannot do that. Just like mortgage banks, credit card banks will not negotiate with consumers who are current with their monthly payments. Otherwise, they would be losing money to everyone seeking to negotiate their credit card debt.
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.
What percentage of the balance will a credit card company settle for?
Online consumer forums have stories of consumers settling for as little as 20 and as much as 70 percent of their credit card account's original balance. According to credit card debt settlement expert Charles Phelan, consumers who settle on their own get the best settlements. Phelan also says credit card companies would rather deal directly with a consumer, rather than go through a debt settlement firm.
When approaching a bank for a debt settlement, a consumer must present a convincing case with low income, damaged credit and legitimate hardship issues. According to the Credit Card Debt Survival Guide, credit banks are mostly likely to settle for the lowest amount of money and may offer to settle right before the account charges off, which is usually around six months of arrears. - 31377
About the Author:
Matt Highlander researched and wrote the Credit Card Debt Survival Guide for consumers seeking to educate themselves about credit card debt relief.
