Credit Card Debt Negotiation
Credit Card Debt Negotiation is the process by which a third party assists you in negotiating with all your credit card companies to accept a settlement amount. The average debtor/client is able to address their individual debt amounts and become financially relieved. In order to get a creditor to agree to a settlement of the debt, a program candidate must be in arrears on their payments to the creditors, which will affect their credit adversely. For consumers who owe a lot to credit card companies, it is likely that their credit is already suffering from their debt amount. In addition to the credit rating concern, there are several other factors that should be considered before opting and qualifying for debt negotiation.
Your creditors have the right to sue a debtor in court if they are not paying according to stipulated credit terms. Legal action is usually a last resort, and most creditors prefer to settle. However, once a creditor feels that they've exhausted every possible collection method, they're left with no other choice but to pursue the collection of that debt in court. Therefore, the longer you wait to address your past due accounts the greater the likelihood that you'll be the target of legal action by your creditors. Since this is the case, all debt negotiation candidates should always try to deal with their past dues debts as quickly as possible. As a rule of thumb, being in a debt negotiation program for longer than 3 years is not advisable, although exceptions can sometimes be made.
As expected, each bank deals with debt negotiation differently. While almost every creditor does settle, some creditors are more antagonistic than others. Three of the most difficult creditors are Citibank, Discover, and MBNA. These creditors' historical settlements tend to be much higher than the others. These creditors are also more likely to pursue legal action to collect your debt.
If you qualify to enroll in a debt negotiation program due to the direct result of individual circumstances beyond your control (divorce, medical issues, job loss) and you are committed to addressing your financial situation, we will ask you to send us a written statement documenting your financial hardship situation for your creditors. However, if your financial condition is a result of poor budgeting rather than a financial hardship, it's still likely that you'll be able to obtain a settlement.
Individual results may vary and are based on amount of debt, ability to save funds and successful completion of all program terms. Program does not assume or pay any debts, and does not provide tax or legal advice. Please read and understand all program terms before enrollment. Not available in all states.
