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.
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 would a credit card company 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.
While credit card debt settlement firms may assert otherwise, settling a credit card debt does not involve a legal secret.
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 would a credit card company 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.
About the Author:
Matt Highlander researched and wrote the Credit Card Debt Survival Guide. Learn about debt settlement and legal nonpayment strategies for eliminating credit card debt.
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