Credit Card Debt Settlement

"How much are these earrings?"

"$100", the vendor replies.

"Will you take $60?"

"$75!"

"$70."

"Deal."

And just like that you can understand how credit card debt settlement works.  What you are doing when you negotiate with your creditors is trying to strike a balance between what you want and what they want. 

Both parties should be happy after the end of negotiations. You should be relieved that you were able to save 30 to 50 cents on the dollar for each dollar of debt you owe. And the bank should be relieved they are getting their money now instead of waiting months or years for collections efforts to pay off.

Not all banks or credit card companies want to settle your debts though.  Some may try to sue you.  But if you have no assets then what can they sue you for? If you had assets you would have sold them and paid off your debts right?

So while you can get sued when you default on your credit cards you cannot go to jail.  There is no debtor's prison for failing to pay your credit cards.  There is just a ruined credit score. But that was going to happen anyway if you filed for bankruptcy.

Debt settlement works better than bankruptcy because you do not have to pay for lawyers and the bank does not have to pay for lawyers. With the new bankruptcy laws you still have to pay back most of what you owe so you do not really benefit that much when you file.

With credit card debt settlement, you will have a lower credit score as you start missing your payments but then once you settle, you can start working on repairing your credit a year or two afterwards. 

With bankruptcy you will have ruined credit for at least 7 to 10 years if not longer.  It's just not worth it.

What is the fee for credit card debt settlement? What does debt settlement cost?

Because the laws are different in each state there is no one rate or fee percentage that will apply to everyone.  Some companies charge an upfront fee and a monthly fee while some just charge a monthly fee.

Some companies only charge you based on what they save you.  These are the more reputable companies that work on getting you results and you should try and work with them.

But on average, you can expect to pay about 10 to 15% of your debts to a debt settlement company. 

When they can save you 30 to 50% on your debts this is a small price to pay.

Click Here For Credit Card Debt Settlement

However, you can also settle your credit card debts yourself and save that 10 to 15% fee.  There are courses out there that teach you the tactics and show you the best debt settlement letters that work. 

Click Here For DIY Credit Card Debt Settlement