If you are like many Americans, you are struggling with mounting credit card debt and the inability to pay your monthly bills. At times, it can be tempting to just give up and walk away from your credit card payments and other debts, but this will create problems for you that will last for years. The other option that might cross your mind is bankruptcy, but, again, it will haunt you for up to a decade if you decide to go that route when it comes to dealing with your debt. Take heart though; there are debt solutions that can resolve your problem and help you find your way back to financial health.
DIY Debt Negotiation?
Lots of people think do it yourself debt negotiation is fairly simple, at least until they actually start trying to do it. Debt negotiation is the process of working out payment agreement with creditors. Often, do it yourself debt negotiation is much less successful than working with a professional credit counselor if you do not do it correctly.
With debt negotiation, creditors may accept a lump sum settlement payment, lower your interest rate, forgive accumulated fees or reduce the balance you owe them. However, it is a process that is time consuming and often frustrating. Most front-line customer service representatives do not have the authority to make debt reduction decisions. Additionally, it usually takes many telephone calls and numerous letters to reach an agreement with your credit card or other creditor companies.
For many people, the results of negotiating down your own debts are frustrating. Although you may have high hopes of reducing your unsecured bills dramatically, when you try to negotiate on your own, you may only get concessions to allow you to enter a financial hardship program. These programs do not actually reduce your debt in any meaningful way.
A professional credit relief counselor is able to accomplish far more in their efforts on your behalf. A qualified credit card relief counselor is able to regularly correspond and talk with your creditors and negotiate with decision-makers. They can reduce your balance, get your interest rate lowered and have accumulated fees removed from your account. Since they have specific training and experience negotiating with credit card companies and other lenders, they are able to use their skills to pinpoint the best approach to lowering your debt and financial obligations.
Benefits of Credit Card Debt Negotiation
Many people are fighting to just keep their heads above water financially. Jugging multiple credit card payments can add to the stress of trying to pay all of your other monthly bills. Debt negotiation can lower your bills, giving you more breathing room in your monthly budget.
In many cases, debt negotiation services can reduce your debt by up to 50 percent. For most consumers, this is well worth working with a professional credit counseling service. Additionally, although your credit may suffer an initial hit, it will quickly recover as you are able to make regular monthly payments to your creditors. Gone will be the days of making late payments or missing payments entirely. Instead, you will have a reasonable payment schedule with only one payment per month. This will make it easier for you to manage your budget and still have extra money to pay off other bills.
Forms of Debt You Can Negotiate
Not all forms of debt are legally acceptable for debt negotiation or settlement. There are stringent legal requirements regarding debt negotiation and settlement that are regulated by the Federal Trade Commission.
Acceptable forms of debt include:
• Credit Cards
• Payday Loans
• Cash Advance Loans
• Lines of Credit
• Medical Bills
• Personal Loans
• Repossessions
• Collection Bills
• Business Debts
There are also a number of debts that cannot be used for debt negotiation or settlement. These debts include:
• IRS Debts, Including Back Taxes
• Lawsuits
• Auto Loans
• Student Loans
• Government Loans
• Home Loans
• Mortgages
• Utility Bills
• Any Other Secured Debts
How Debt Counseling Works
When you work with a debt or credit relief counseling service, you should receive a no-obligation debt analysis to determine the best approach to resolve your credit problems. A credit counselor may recommend a combination of services, including debt consolidation through settlement and negotiation. They will work on your behalf with your creditors to reduce your debt and reach a reasonable and affordable agreement for you to repay your credit obligations.
If debt consolidation is an option, we recommend avoiding loans. Instead, we arrange for you to participate in a debt consolidation program with the best debt relief firms. You make regular single monthly payments, which are deposited into your settlement account. Payments are then made on your behalf to your creditors. Usually, consolidation accounts are set up after a credit counselor has performed debt negotiation and settlement efforts with your creditors and lowered your debt obligation. The debt consolidation allows you to manage credit payments much more easily.
If you are struggling with your monthly credit obligations, give us a call or fill out the form to request a free debt analysis. We charge no up-front fees and you are only charged a fee when we deliver results.