Credit card settlement is often confused with debt consolidation. However they are very different and there are differences between them as well. Consolidation allows you to combine all of your debts into one, easy to manage loan. This will make it much easier for you to pay off your credit card bills each month. On the other hand settlement is when you work directly with creditors to settle the amount you owe for a fraction of what you owe.
Credit card settlement can be done in an online format or face to face with a counselor. You can also negotiate on your own, but most often this is done through a professional third-party company. This will save you time and money because you won’t have to invest your own time researching relief options. It is important that you research and compare the various companies you find with the Better Business Bureau and credit card debt relief networks. These relief networks and the debt relief companies that use them to work with businesses that have good track records of success and affordable fees.
In addition to the benefits of credit card settlement, you also will not lose any of your credit score. Most people have a hard time losing their credit score because of too many late payments. With debt settlement you can save your credit score and be debt free in a few years. This saves you a lot of money in the long run because you won’t have to spend so much to settle the rest of your debts.
One of the biggest advantages to using credit card debt relief programs is the convenience. When you are overwhelmed, you often don’t have time to sit down and calculate how much you really owe and what your options are. You can immediately begin to pay the least amount of money that you owe. Then you make future payments to the company until all of your debt is settled. This option is extremely convenient.
You will also be able to stop paying the credit card companies each month. If you miss one payment, they will go after you for the full amount. This could result in legal action and a lot of stress on you and your family. You can stop paying the credit card companies by using a professional debt relief company. These companies will negotiate directly with your creditors. They know the legalities and the negotiating skills needed to get your creditors to agree to a settlement.
Using credit card debt relief programs can also help you avoid paying taxes at all. Most people are required to pay taxes at the end of the year, but you can avoid paying taxes by having the debt relief company to work on your behalf. They will be the person to pay all the back taxes and reduce your total amount owed.
Your credit card settlement will also have other benefits for you. When you settle, you will be in a better financial position than you were before. With a higher FICO score, you will be offered lower rates on loans. You will also be offered a longer time to pay back the money you owe. Many consumers who use debt relief services don’t even bother to check their credit score, and usually end up regretting the decision later on.
All the benefits mentioned above are great things for you and your business. However, there is one more benefit that you can receive when you use a professional company for credit card settlements: functionality setup. The best ones will do everything that you need them to do for you. This includes functionality setup, the sending of cease and desist letters, and sending the settlement amounts.