When it comes to collecting on credit card debt, creditors only look to “creative” solutions when it becomes evident that you will be unable to meet your obligations. This creative approach is known as a credit card debt settlement, which allows you to settle credit card debt for less than the current outstanding balance. While the deal can be structured in various ways, one such plan might feature paying half the owed amount in a lump sum. From the viewpoint of the credit card company, it’s the same philosophy behind the old fishing adage to cut bait if it looks like you are about to lose your “financial rod and reel”.
Choosing Credit Card Debt Settlement
Credit card debt programs are an excellent way to discharge large debts at less than their face value, but the effort comes at a cost to your credit rating, and you run the risk of getting scammed by fly-by-night operations. As such, it is important to know who you are working with when entering into an agreement with a debt settlement company. Towards that end, watch out for warning signs and do your due diligence which should include:
- Avoiding companies that reach out to you first
- Asking lots of questions regarding fees and procedures
- Getting a firm timeline regarding when settlement will fall off your record
- Checking the Better Business Bureau
- Reading the “small print” before signing anything
Settle Credit Card Debt Quickly and Painlessly
If you’re looking to settle credit card debt, you should reach out to the experts here at Americor Financial to discuss the full range of options available to you when it comes to devising a debt solution that will work for your individual situation. Here at Americor Financial, we are experienced with an array of debt reduction strategies that are designed to help you get out of debt and escape the cycle of bad decision making.