Credit card debt settlement, an option to slash multiple credit card debts
There are many consumers who are extremely worried about their soaring credit card debt that they’re carrying and are also wondering about the ways in which they can put an end to their rising debt worries. The consumers who have misused their credit cards are the ones who are drowning in a sea of debt. It is only when you receive your credit card billing statements that you realize your mistakes with your credit cards. Settlement of credit card debt is something that you can if you wish to reduce your total outstanding debt. If you’re wondering about the details of settling your credit card debts, read the following article.
When should you opt for debt settlement?
If you’re confused about when you should seek the help of credit card debt settlement companies, then the following examples will give you better understanding.
- When the total amount that you owe is more than $10,000
- When you can’t bear the interest rates and the monthly payments towards your debts
- When you’re are tired of splitting your payments among multiple creditors and you wish to combine your payments into a single loan
- When you want to reduce the total outstanding amount and repay an amount that is much less than what you actually owe
- When you want to start fresh but you’re looking for an alternative to bankruptcy
- When you want to stay out of the debt for good
- When you want to get rid of all debt collection calls
What to check before choosing a debt settlement company?
There are multiple debt settlement companies in the market and you have to choose the one that has your best interests in mind. Here are the points that you should consider before choosing a debt settlement company.
The first thing that you need to check is whether or not the debt settlement company is registered with the Better Business Bureau. If it is not registered you should be wary of the legitimacy of the company and do further research before giving them consideration.
Does the company charge upfront fees from you before checking your finances? Well, if the debt consultant asks for upfront fees even before reducing a portion of your outstanding balance, you should proceed with caution and check into other companies. The FTC doesn’t allow the for-profit companies to charge such fees and you can even report this to the FTC.
Does the company tell you that your credit score will be hurt when you settle your credit card debts? If they don’t, they’re misrepresenting their services and you should avoid getting help from such companies.
As debtor, it is important for you to carry on the duty of choosing a worthy debt settlement company. Make timely payments on the credit cards for bad credit that you keep, in order to boost your credit score so that you can become creditworthy yet again.
J.C. McClain has authored two books on credit cards available at the Amazon Kindle library, Credit Cards For Bad Credit 2013 and Best Credit Card Rewards 2013. McClain’s YouTube videos can be found by searching Credit Cards For Bad Credit. McClain has also appeared on the nationally syndicated radio financial fitness show sharing his expertise in credit repair. McClain is also the credit expert for Cloud Technology Systems, Inc
Categories: Blog Tags: Alternative To Bankruptcy, Bankruptcy, Better Business Bureau, Billing Statements, Bureau History, Cards Credit, Cards For Bad Credit, Consumers, Credit Card Billing, Credit Card Debt, Credit Card Debt Settlement, Credit Card Debts, Credit Cards, Credit Debt, Creditors, Debt Collection, Debt Settlement Companies, Debt Worries, Further Research, Interest Rates, Legitimacy, Settlement Company, Slash
I had a old cell phone bill that had slipped through the cracks, that was not included in my bankruptcy, the total amount was $560 and change. I had been getting calls occasionally from a law firm to settle the bill and since I thought it had been included in my bankruptcy I just dismissed it and thought they would eventually figure it out and quit calling me.
Let me pause for a minute and explain how important it is to make sure all of you debts are included if you should file bankruptcy, just to make sure, you should get a copy of your credit report and make sure all of your debts on your credit report are listed in your bankruptcy, make sure your attorney has a copy of the credit report also.
I found out that this cell phone bill was not included and when they called today I asked them what they would take to settle the debt and they said they they would settle for approximately $226. I asked them if I could make a counter offer and the lady said that I could so I told her that I could pay half of that, approximately $113. She supposedly went to ask a manager and came back with approval to accept my offer.
If you find yourself in a position to negotiate an old debt don’t be afraid to offer them less and maybe I could have gotten it reduced even further. Let me leave you with two other points, the first is to always get the settlement in writing before making the payment and the second is never give them access to your checking account by giving them the account number.
If you have had similar success I would love to hear about it… just post below or send me a private message. Click Here to go to Credit Cards For Bad Credit Page
If your credit bureau report shows negative information about your accounts such as late payments, charge offs, repossession, foreclosure or possibly a bankruptcy and it is true, these remarks must remain on the bureau for the specified time allowed. For example, late payments and charge offs remain on your report for seven years while a bankruptcy will remain for up to ten years.
It is never too late to turn your financial life around. You can rebuild your credit status. By simply paying your bills on time and not overextending yourself, you will begin to demonstrate a good payment history. Within a short amount of time, your positive credit history will build. Eventually, the negative information will be deleted from your credit report leaving you with the positive history you are starting to build today. To apply for new credit that you can use to start rebuilding your credit click here.
The steps in these lessons are proven and effective. The next lesson deals with reviewing your accounts. Get to know what makes up a contract. Learn about what you have signed. The more you know about the promises you have made, the better negotiator you will become. Your creditors will respect you for actually taking the time to care about the financial situation you are experiencing (in most cases).
Your financial character and stability are your tools for your financial independence. Use them wisely. YOUR financial future depends on it.
From the time you fill out your first credit card application, or apply for your first credit card, your credit file is already in the works. The information being reported to your credit file is being supplied by your creditors, not from you. Your creditors supply the credit bureau companies with your personal and financial account information to create a credit bureau history that is accessed by your social security number and date of birth. The credit bureaus in turn sell this information to credit card companies, banks and insurance companies in the form of a credit report.
When applying for credit, your potential lenders will access your “financial report card” and score you according to your grade point average. Your score, for example, will either “pass” you to getting your first credit card or “flunk” you by denying you any credit at all. When starting to rebuild credit it is important to know where you are currently at, that is why it is a good idea to know what is on your credit report.
Your credit file includes the following information
- I.D. SECTION : Personal information such as your name, address, phone number, date of birth, social security number and your place of employment are listed in this section.
- CREDIT HISTORY SECTION: Your creditor(s) name and your payment history are reported here in this section whether it is positive or negative. The creditor’s name, the account number, type of account (joint, individual etc.), when the account was opened, total months your account has been reported, date of your last payment or charge, your highest balance, the term of the loan balance due on the account, status of the account (rated from 1 to 9…1 being best and 9 the worst) and the date of the last account update from your creditor.
- COLLECTION AGENCY ACCOUNTS : Recorded here are all of your accounts which your creditor(s) have turned over to a third party collection agency for collection.
- COURTHOUSE RECORDS : Any public record information such as bankruptcy filings, tax liens, judgments, repossessions, and records of marriage and divorce are shown here.
- ADDITIONAL INFORMATION : If your former addresses and past employment are reported by your creditor(s), they will be shown here.
- INQUIRY SECTION : Inquiries are listed when a creditor requests a copy of your credit file. These inquiries are generated when you apply for a credit card, bank loan or mortgage. Inquiries are also made when a creditor checks your credit file periodically for possible credit line increases, provided your accounts are up to date, or credit suspension if derogatory marks are viewed. Companies that provided you with promotional offers are also listed here but only you can view these, your creditors will not see these entries. These inquiries remain on your credit report for up to two years. Too many inquiries will reduce your overall credit score so be a smart shopper and stop shopping for a while.
If you are serious and want to rebuild credit then this information enclosed in your credit report is important to know.