Do you have trouble in paying off your credit card? If you do, you may need to consider credit card debt settlement. Before you decide to try this, you have to understand about it including risks. You also have to know how to settle credit card debt clearly. In this article, we will discuss it all. So, you have to pay attention to the following discussion.
The Benefits of Credit Card Debt Settlement
Before we discuss further about how to settle credit card debt, now we will share the benefits first. Actually, there are some advantages. One of them is for saving. It means, if you can negotiate with creditor and you have a deal for lowest settlement, it means you can save money for paying off debt. Besides that, it also helps you pay debt off earlier or faster. Because of that, it is very important to understand how to settle debt of credit card.
The Risks of Credit Card Debt Settlement
How to settle credit card debt is important to know because it offers many benefits. However, it also has some risks. One of them is that the creditor usually requires you to make your monthly payment to special saving account for a few years before you settle your debt. Besides that, there is also no guarantee that the process will run successfully. In addition, there are some debt settlement scams which make promises that they cannot deliver abilities. However, you still need to practice how to settle credit card debt.
Popular Banks for Settling Credit Card Debt
Settling credit card debt requires you to find the lenders. From many options available, bank becomes the most popular option. There are so many banks that provide this service. One of them is Bank of America. Besides that, there are also Chase, Citibank, Capital One, Discover, Wells Fargo, USbank, First national Bank of Omaha, and GEMP & GE Capital or Synchrony. You can apply how to settle credit card debt to one of the banks above or to other agencies that offer the similar service.
Stages in Settling Credit Card Debt
If you want to settle your credit card debt, there are some different stages that you have to know. Here are some stages that you need to understand:
- First Stage (Dealing with Original Creditor)
One of the ways how to settle credit card debt is to deal with original creditor. Usually, it becomes the option for you who have not pay credit card bill for around six to seven months.
- Second Stage (Dealing with Contingency)
You may also deal with assignee debt collection agency or contingency. It means your creditor holds your debt and your credit card account is not sold.
- Third Stage (Dealing with Debt Buyer)
In this case, you deal with debt buyer, a company that purchases your debt legally.
- Forth Stage (Late Stage Collection)
This is the last stage how to settle credit card debt. In this stage, your credit card account is placed with a lawyer licensed to practice law.