I Love Credit Card Debt Settlement, Should You?

No one is really prepared to open that envelope and read the statement “….we have begun the pre-foreclosure process….” The shock is universal, the flash of panic undeniable. As overwhelming as the situation feels you do not need to panic. You can get through this mess, you can survive. Do it right and you will be in a better financial position coming out than you were going in! If bankruptcy is not an option for your situation, debt settlement is one of the most effective tools to help you wake up from your debt nightmare.

Do You have a 'Right' to Settle? First off, if you have good credit and can make your payments DO NOT settle your credit card debt. That statement behind us, let’s get real.

If you are anything like millions of other Americans your good credit has become a thing of the past. You are skipping payment too often. You are behind on your payments. You don’t see how you will ever pay off the multiple credit card bills. The lenders are boxing you in, charging late penalties and bumping your interest way up over 25%. And along with the new fees and interest they feel they have the right, the obligation, to call you multiple times a day. “Can you make a payment today? When can you make a payment?, You need to get this take care of today!....“ they tell you, as if you don’t make your payments just so you will have someone to talk to! It is an ugly cycle. Getting the harassing phone calls stopped and the amount you owe reduced 80 or 90 percent is starting to sound a bit like heaven. That one time ding to the credit rating may actually put you in a BETTER situation than where you are now headed. And you may, in time, get rid of that anxiety wave that hits you every time your phone rings. installment loans no credit check no teletrack - So if you are looking to get this loan to arrange certain luxuries than you should better wait for your payday.

The credit card companies know they over extended credit. It is no shock to them that so many of us are struggling. They are getting hit with defaults daily. Your lender recognizes the very real risk you could fully default on the loan and very willing to consider settlements. A bird in the hand is worth more than 5, 6, 7 or even 8 in the bush. They will offer you a payment plan to make a settlement even more attractive to you.

Of course, they will only settle with you if you have fallen behind on your payments. Your credit rating is going to take a hit, a hard hit. But you will get much more favorable settlement terms and have the means to put this ugliness behind you. So, if settlement is in your future, stop your pointless monthly payments and prepare to use your "payment" money as "payoff" money.

Debt Settlement Can Be a Good Deal Some say you should not settle. The penalty to your credit rating is just too high. You will have difficulty getting future loans and will pay a higher interest if you do get a loan.

But isn’t that same result developing right now? You can’t make your current payments as they are; you are flagged as a perpetual late payer. Your credit rating is dropping like a stone. The constant collection calls are wearing you out. A settlement will end it all with a one time hit to the credit score. It may be a small price to pay. Drag out the torture or pull the bandaid off with one, effective motion?

Will Debt Settlement Help My Credit Score? Don’t expect future lenders to hi-five you for having made a debt settlement. But put it into perspective. Settlement is better than an extended history of late payments, default and bankruptcy. Settlement can put you on the fast track to improved credit. Well, maybe not the fast track, but at least you are on the path! The theory is the faster you settle and get the bad debt behind you, the quicker you can begin improving your credit score. Rather than continuing to sink, you can begin to rise.

Do I Need A Debt Settlement Company To Help Me? ABSOLUTELY NOT!! I am sure there is a great debt settlement company out there, somewhere. Heck, if you know of one, let me know - I love being proven wrong. But until that magic moment occures, remember one thing: debt settlement companies make used car salesmen look like Honest Abe. These companies have intricate schemes in place specifically designed to separate you from what little money you have left. Some require you pay upfront, others charge you based off a percentage of what they “save” you. What they never tell you is the big secret. You don't need them! You can do everything they can do for you and you can do it better, faster, and a whole lot cheaper!

Next Time I’ll cover How To Negotiate with Your Credit Card Companies. It’s easier than you think!

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