Card Credit Debt Reduction

I see a lot of advertisement from companies that claim they can reduce your credit card debt by 40% to 60%. What is the down side to using them? If they are successfull does it effect your credit rating? What do they charge? What must your situation be for them to be able to be successfull, Broke?

Debt-settlement companies promise that you can get out of your debts for pennies on the dollar. Typically, these outfits demand that you stop paying your creditors and instead send the money to them. After a few months, the debt-settlement company promises to open negotiations with your lenders and use the money you've sent to pay them.

The idea is that after a few months of not getting paid, your creditors will agree to a fraction of what they're owed.

Of course, your credit will be trashed at this point, you'll have paid fat fees to the debt-settlement company, and you may be facing lawsuits from your lenders. That's if you're lucky. If you're not, you'll risk all this, and the debt-settlement company will disappear with your money. If you need more details, read "Debt settlement: A costly escape."

Better alternatives include:

* Credit counselling. Legitimate credit counsellors have debt-management plans that reduce or eliminate the interest rates on your credit card debt.

* Bankruptcy. If you can't pay your debts, you may be better off getting a fresh start through bankruptcy. Your credit rating may recover more quickly, and you'll be able to keep the cash you would have otherwise sent to the debt-settlement company. Consult an experienced bankruptcy attorney who can evaluate your situation and discuss your options

2008-07-15 11:05:34 by Les R

www.letsforgetdebt.com - An excellent informative site and service to help anyone with credit card debt. A step by step video talking about the ...

I need help with paying off my credit card debts. There are so many debt reduction /consolidation agencies that I don't know which one is good/authentic and will give the best rate (discount). For those who had gone through this experience, please advise. Thanks.

I wouldn't use any of them they are rip off artists. They take your money and do nothing, been there done that. Go to Consumer Counseling, in every city or county, it is free, non profit and they don't charge but they will contact all the places you owe money to and get you with lower payments and great ways of getting out of debt !! They are well known by all companies and acknowledge Consumer Credit Counseling as serious and good to work with .

2009-05-03 04:46:52 by hayati k

Price: $19.95

None. Credit card debt reductions companies charge you money and do not reduce your debt.

2010-01-14 20:56:13 by wasinmilitary

Price: $9.99

I unfortunately am one of many who has too much credit card debt and due to some past glitches, my interest rates are high. I pay my bills and try to pay as much as I can but can't seem to put a dent in the load. I keep hearing on radio and TV about these "cut your bills in half" credit card relief plans but I am very skeptical of those plans. Any advice....recommendations?

The services you hear about on T.V. will cost you money but is worth it in the long run. They will negotiate with the credit card companies and reduce the amount you owe and stop the recurring interest debt. I'm not sure if they still do this but years ago I went to the Chamber of Commerce in North Carolina and did the same thing for free. I had to bring them all of my credit cards, which they promptly cut up. They then contacted all of my debtors and got them to stop adding interest to my debt. Every week I brought the Chamber an agreed upon amount which they divided up among creditors. My only out of pocket expense was for the credit report, which was about $20 (about 20 years ago). Good luck.

2008-06-03 16:35:41 by Steve A

My husband and I have tons of credit card debt - $25,000. One of the cards is connected to our debit account and if we have a negative balance in our debit account it will transfer funds from the credit card. It has become a viscus circle. We cannot afford to make payments on our credit cards, but do so anyways by using our debit account, and when we have a negative balance the CC transfers money (happens 2-3 times a month). We own our home, but have been trying to sell it for the last 6 months with no luck. We cannot afford to make the mortgage payments any more. We are not late on any payments (CC or Mortgage), but we are running out of credit card funds to make our bills. We are basically paying our CC bills with the same CC we're making the payment on...

We need to do something fast. Is debt reduction agencies a good way to go? Any advice on what would be a good one. Have you been in the same situation but got out alive? Please help!
Billie H: Your answer was very helpful......NOOOOOOOOOOT like Borat would say.

I think you need to take a long hard look at yourselves. Dont go with the debt reduction agencies as other have said. Talk to your bank - can you extend your mortgage - its the cheapest money you will ever have -can you up your income, get boarders, a 2 nd job , sell stuff Get real before you loose your home
http://lissiearticles.com/how-to-get-out -of-debt-and-save-money/

2007-12-13 13:59:38 by Camilla