Credit card debt settlement is an option that you may be able to take if you have long outstanding credit card debts where you are not making the monthly payments.To learn more about reducing debt visit http://www.reducedebtstobedebtfree.com

1. Credit Card Debt Settlement: Your Options
http://www.reducedebtstobedebtfree.com
Credit card debt settlement is an option that you may be able to take if you have long
outstanding credit card debts where you are not making the monthly payments.
What Is Discounted Debt Settlement?
Sometimes, if a company can from its records that you have not paid anything for a while and
they figure it is not likely that they will get the full amount of the debt plus interest from you,
they will sent you a discounted debt settlement offer.
This means that they will write with an offer where you can pay perhaps 50% of the debt and
they will write off the rest. Usually they will want this all in one payment, but if it is a large
amount they may accept it in two or three installments.
Often the letter will come from a debt collection agency. This can mean that your original
lender has signed over the debt to the debt collectors, or it may simply mean that the agency
is working for a percentage of whatever they can recover.
Why Do They Offer Debt Settlement?
The finance companies offer this when they can see that you are having so much trouble
making payments, they might have to take you to court to get the whole amount, and maybe
they wouldn't even get it then, because you might declare bankruptcy.
So they have a choice between incurring the cost of court proceedings and perhaps still
getting nothing from you, or offering you this deal where you pay 50% or whatever. They
figure they will be better off accepting half of what you owe, than trying to get the full
amount through the courts.
What Should You Do?

2. Whether you should accept the offer depends on many factors.
First, you should be aware that accepting this will affect your credit score in a negative way,
because you will not have paid off your whole debt. If you can pay the full amount then it is
better for your credit record if you do so. However, you probably would not have gotten to
the point of receiving a settlement offer if you could pay in full. Accepting the settlement
offer is usually better than having court actions against you.
Second, you will need to consider how you can make the payment that they want. Does it
mean that other debts will go unpaid for a couple of months? What will be the consequences
of that? Would you have to miss rent payments and perhaps lose your home? Think carefully
about how you can raise the money.
Third, even if you decide to accept it may be worth trying to negotiate a lower settlement.
This means calling them and saying that you cannot pay what they have asked for but you
could pay 40% or whatever. This is often worth trying because it can save you some money
without extra penalties.
When you call, write down the person's name that you speak to. If they accept your offer, ask
them to put it in writing and wait for the letter to come before you pay. Then write a letter to
send with your check stating that this is full and final settlement of your debt, and ask them to
write back acknowledging that the debt has been paid.
Be aware that if you decide not to accept the offer, then after a while they may take the matter
to court. A court may judge that you must pay the whole amount plus the costs, so you would
have a lot more to pay.
If you decide to accept, always read the small print on any offer. You need to be sure this is
full settlement and they will write off any additional debt, so they have no right to come back
to you in future demanding more.
When everything is complete, check out what has been posted to your credit record. If there
is any mistake you should ask for it to be corrected right away and you will need to send
copies of all of your correspondence. So keep all of the paperwork when you accept any
credit card debt settlement.
If You Want To Learn How to Be Debt Free Visit
http://www.reducedebtstobedebtfree.com
credit card, debt settlement, credit card debt, eliminate credit card debt, negotiate credit card debt, debt settlement, credit card debt solutions,
settle credit card debt, credit card debt relief, debt settlement program, credit card settlement, credit card relief, credit card debt negotiation,
credit card debt consolidation, credit debt settlement, credit card debt help, consolidate credit card, debt, credit card debt reduction, debt
settlement advice, settling credit card debt, consolidating credit card debt, help with credit card debt, reduce credit card debt, reducing credit
card debt, debt relief, credit card debts, negotiating credit card debt, credit card debt calculator, credit card debt management, credit card
debt elimination, credit card debt forgiveness, credit cards debt, credit card debt consolidation loan, debt reduction, paying off credit card
debt, debt reduction services, credit card consolidation, average credit card debt, debt negotiation, credit card consolidation loan, credit card
debt advice, pay off credit card debt, debt settlement letter, credit card help, consolidate credit cards, negotiating with credit card companies,
credit card debt law, credit card calculator, how to reduce credit card debt, credit card debt consolidation loans, get out of credit card debt,
debt relief companies, debt settlement programs, credit cards, do it
yourself debt settlement, debt consolidation, credit card, debt settlement, solutions, debt, consolidation credit card, credit card counseling,
card credit debt, best debt settlement companies, credit card settlement process, credit card debt statistics, consolidation credit cards, debt
settlements, consolidate credit card, getting out of credit card debt, debt settlement help, credit, card bankruptcy, debt settlement leads, debt
settlement agreement, credit debt, debt credit card, credit debt consolidation, bad credit debt consolidation, credit card debt after death,
consolidating credit cards, credit debt relief, credit card repayment calculator, credit card consolidation loans, consolidate credit debt, credit
and debt counseling, bad credit debt consolidation loans, credit debt management, credit debt solutions, freedom debt relief, debt
consolidation, card consolidation credit debt, pay off credit card, card consolidating credit debt, debt consolidation companies, credit
consolidation, debt relief programs, debt consolidation loan