Credit card debt can be overwhelming. If you are like the average American, you have at least three to five credit cards and debt of more than $10,000. Juggling several different monthly credit card payments, along with rent, utilities, food costs and other expenses can be frustrating if you feel like you don’t have enough money every month. Working with professional credit counselors, you can find financial help for credit card debt and begin to repair your credit and get back on the road to financial security.
Professional Debt Relief Organizations
Debt relief and credit counseling companies are regulated by the Federal Trade Commission. According to rules recently put into effect in late 2011, credit counseling agencies are no longer allowed to charge up-front fees to customers. Additionally, credit counseling and debt relief organizations may not misrepresent the outcome of using their services and advertising claims must be based on experiences from actual past customers.
Credit counseling organizations must also disclose a number of issues to potential clients. Disclosures must include information regarding fees charged and the estimated length of time necessary to complete their services. Also, information must be provided regarding the estimated amount of potential savings. Agencies must provide information regarding estimated debt settlement amounts based on a customer’s actual qualified debts. Disclosures must also include warnings regarding non-payments, including potential damage to credit, debt collection attempts and lawsuits. Finally, disclosures must include information regarding the potential tax impact of debt relief services.
Legitimate credit counseling organizations also frequently belong to professional associations or have accreditation credentials. The International Association of Debt Arbitrators, American Fair Credit Council and Association of Independent Consumer Credit Counseling Agencies are recognized as having and promoting high standards of ethical and professional treatment of clients by member organizations.
Debt Negotiation Services
Debt relief for credit card problems can be accomplished with debt negotiation efforts. In many cases, professional and experienced credit counselors are able to lower your credit card debts by negotiating decreased principal amounts, eliminated accumulated fees and lowered or eliminated interest rates. Lump sum payments may also be part of the negotiated debt settlement agreement.
Often, consumers believe they can perform debt negotiations on their own. However, they soon discover that the process is time consuming and frustrating. Many credit card companies are reluctant to negotiate directly with account holders. They may offer temporary solutions such as financial hardship programs. However, these programs do not lower your interest rate, eliminate fees or decrease your credit card debt in any real way.
Professional credit counselors, however, are often able to skillfully navigate the credit card waters and get access decision-makers and reach settlement agreements. By talking to you in advance during a debt analysis, they have a good understanding of your realistic abilities to pay back your debts. Throughout the process, a credit counselor should keep you informed of their efforts on your behalf and secure your final approval before accepting a debt settlement arrangement.
Credit Repair
The credit repair process is often a matter of improving your payment habits. With our debt settlement program in place, you will have a lower debt to income ratio and be in a position to pay all your bills on time. Credit card companies will usually begin to report positive payment information on your accounts within a short period of time, improving your credit report in the process. The short term implications of getting financial help through debt settlement should not deter you from using it as a debt elimination method because of the short term negative effects on your credit score.
At DebtConsolidation, our debt relief program typically takes approximately 24 to 48 months. We do not charge up-front fees, and you are not charged a fee until you see results from our efforts on your behalf. We are members of the American Fair Credit Council, International Association of Debt Arbitrators and the United States Chamber of Commerce.
Our credit relief counselors are professionally trained and experienced in negotiating debt settlement agreements with credit card companies. If you believe you would benefit from our services, please call us or fill out the form for a free debt analysis and we can help you get financial help with your credit card problems.