Credit Card Debt Services

Overview

Debt Settlement is an effective tool used to efficiently eliminate credit card debt, medical bills, and unsecured personal loans which allows consumers to payoff their debt for a less than owed amount. In retrospect, debt settlement is the cost-less approach to getting out of debt, and closing your accounts. If your looking for complete solvency - debt settlement is your resolution.

Be sure to read below Credit Card Debt Services has compiled a library full of information regarding debt settlement, and we're pretty sure you'll understand every inch of debt settlement before leaving this page.

Savings

Debt settlement saves clients an average of 42% meaning your debts are settled for .58 cents on the dollar. However on several occasions debts will be settled as low as .30 cents on the dollar leaving debtors with a 70% percent savings. Again, every clients situation is different so there is a savings fluctuation. As consumer advocates of debt settlement, we will denominate the most budget sensitive, beneficial new payment plan.

Determining Your Settlement

In conjunction to the article mentioned above we've listed simple, yet detrimental factors that play the largest role in your settlement - savings.

What determines your settlement is the age of your debt / how past due are you? The older the debt, sometimes the better the settlement. Who are your creditors? Each creditor settles debt differently. What state do you reside in? By law, few states (3 to be exact) do not allow debt settlement. Some states are easier to negotiate, and reach settlements in - why? Because in some states less legal action can be taken, and your creditors - like us - know this.

Getting Approved

If your total amount of unsecured debt (credit card debt, personal loans, department store cards etc.) meets or exceeds $7,000.00 then yes, you may be eligible for debt settlement.

Debt Settlement Legalities

Debt Settlement is a 100% legal alternative to bankruptcy, and your creditors do work conjointly with debt settlement companies to agree upon a fair settlement with regards to your financial hardship. Did you know, every creditor has a settlement department? You're not supposed to know, and hopefully you don't run into any more financial hardships that would lead you here again.

Benefits

Your monthly payment is lower, and determined by you. You are no longer wasting money on interest, over the limit fees, and adjacent penalties stated in small print. Did we mention peace of mind? That's right, you now have a structured payment plan that will get rid of the debt, once and for all.

Credit Affects

The credit affects of debt settlement are nowhere near as harsh as bankruptcy, or credit counseling. Let Credit Card Debt Services tell you why.

Your accounts are closed one at a time, thus improving your DTI (debt to income ratio) which accounts for 30% of your credit score. 35% of your credit score is based off your payment history - news flash - the account is settled - closed, therefore there is no longer a negative affect due to non-payment - so as a matter of mathematics you just improved your credit score by 65%.

Why debt settlement is better for your credit than credit counseling. During the credit counseling / debt management process your monthly payment is disbursed to all your creditors and portioned out depending on each individual account. Why is this bad for your credit? Simple, those accounts are only receiving a small portion of funds monthly - meaning - those accounts are opened longer! Elongating your negative credit score. Whereas, debt settlement companies close one account at a time - finished - done - on to the next one. So in brief, your credit score actually starts improving within the first year of debt settlement, because accounts start closing freeing up your debt-to-income ratio (makes up 30% of credit score). Additionally, your payment history (makes up 35% of credit score) for that account is no longer existent so that is no longer an issue. Now with credit counseling, those accounts that could have been resolved - are still open.

Get out of debt years sooner than any other alternative to bankruptcy, such as credit counseling services. Furthermore, your credit score will start improving 3 months after completing debt settlement, before soon your credit will be back to normal.

Fact: credit counseling / debt management appears on your credit report as handled by 3rd party - that's very bad. Debt settlement appears as 1st party, how? Your member FDIC special purpose - settlement account is in your name, and that's where the funds are sent to your creditors from. Yes we were the third party negotiating a settlement contract, however we did not disburse the funds - you did!

Why Creditors Agree to Debt Settlement

There are several reasons your creditors will agree to debt settlement contracts, letters, and agreements. More than likely you have already paid back more than what was originally borrowed, through interest alone. As time passes your creditors grow more vulnerable, and are more likely to settle for less in fear you may attempt bankruptcy. Your creditors - like you - want solvency. If you're not paying minimum payments any longer they're not profiting. So they too want closure without having to pay for legal action. After debt settlement agreements are reached your creditors not only close your account, but they also write their losses off come tax season. In the end, they lose close to nothing and you gain back financial freedom and get out of the minimum payment downward spiral that at one time drowned you.

Of course debt settlement does come at a cost, you as a client must end your dependency on credit cards, or credit of any form while enrolled in our program. The point of debt settlement is to get you out of debt, and we can not do that if you (the client) continue to accumulate further debts. Cut up the cards, payoff the debt for less, regain your credit score, and take debt settlement as a learning experience.