We have all had to wrangle with the monthly credit cards bills that arrive in our letter box. More often than not, it is bad news, with our card debt clearly mounting into something that is becoming unmanageable. Getting out of this situation is a challenge, but through credit card debt settlement programs there is a viable route of escape.The problem with credit cards is the ease with which debts can be accumulated. And with interest rates added to the total, the problem only gets worse if nothing is done about the situation quickly. Clearing card debts is, therefore, a priority for most of us.The great advantages of going through a debt settlement scheme are that the debt is written off with only a percentage of the debt paid, and bankruptcy is avoided in the process. But what are the key factors to consider?Knowing What a Debt Settlement IsA debt settlement is a special arrangement that sees a complete debt written off in return for a percentage paid. Basically, if $10,000 is owed, then the creditor agrees to write the debt off if $6,000 is paid, or perhaps even less. Some credit card debt settlement programs allow for just 30% of the debt to be paid.There are other methods to apply when clearing card debts, such as a consolidation loan. But these involve paying the full amount, as well as the added interest on the loan itself. A settlement program can translate to significant savings being made.However, the process involved is more than just applying for a debt settlement scheme. Card issuers do not want to lose their money, but want to secure the highest share of the debt owed possible. So, some careful strategizing is required.How to Secure the Best DealThe starting point in the whole process is to refuse to pay your credit card bill. The reason is that as long as a credit card company believes that repayments can be made, they will not be open to agreeing any kind of credit card debt settlement. After all, they want 100% of the bill.But by refusing to pay the bill for around 6 months, the message is clearly made that the card payments are not affordable, and if the card company wants anything, then a deal will have to be made. This may not be the most honest way of clearing card debts, but it is a practical one.Once the inability to pay is established, then it is time to begin negotiations. Hiring a debt settlement company is the wisest thing to do in this regards, allowing them to take care of all the negotiations. However, it is possible to negotiate the debt settlement scheme yourself.Terms and Conditions to ConsiderSecuring the best terms on the credit card debt settlement program is essential if there is to be any real benefit to the exercise. First of all, credit card companies will expect immediate payment on any agreement. For this reason, refusing to pay should disguise a savings plan, so that when a deal is struck, the lump sum can be paid immediately.Also, clearing card debts in this way goes onto your credit report, and effects loan and card applications for about 2 years. However, that is much better than opting for bankruptcy, which will affect applications for up to 10 years.
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ABOUT THE AUTHOR
Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Bad Credit Home Loans please visit her site http://www.easyloanforyou.com
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