Can't pay back your credit card debt? How about when you don't have any cash on hand to pay your bills. These are problems we all face. There is, however, a solution. Debt settlement.
Settling means that you make regular, reasonable offers for paying back your debt to the credit card companies. These businesses are willing to negotiate with you because they will lose a lot more in the long run if you file for bankruptcy. The process works best for those with multiple credit cards and a history of late payments. It works even better if you have some equity in your home. It is, by far, the fastest and cheapest way to get out of credit debt.
When you hire a professional settlement company, they approach the creditors as you would approach them. They explain your situation, tell them what you can afford and give them a realistic budget of how much they can help you reduce your interest rate and eliminate any late fees. A good negotiator can reduce your credit card balance by up to 60% by getting a better deal than you can get from a bankruptcy filing. You will have to pay a portion of the settlement amount as fees, but this is money you can afford. And, at the end of it all, you will have a debt-free business credit rating.
Bankruptcy will stay on your credit report for seven years. You will be required to pay mandatory retainer fees to the bankruptcy court. If you cannot pay these fees, you will be damaging your chances of obtaining future credit.
Settling will not affect your credit score in the same way as bankruptcy. You can use the payment you make to repay your debts as an investment into your future credit score. This is because your credit score at the time of settlement will already be well established. This means that you can begin rebuilding it with each successful payment you make. It may take a few months, but eventually your credit will reflect your new credit line.
If you cannot negotiate better terms for yourself or for your business, you should consider working with a professional debt settlement company. These companies can be very helpful and can negotiate better terms than you could on your own. For example, some card companies may require that you pay them first before they release any funds to you. Other companies may not require any payment up front, but may ask you to send them a check after they settle your account. Settling your accounts on your own may not be easy if you do not have a lot of experience dealing . . . . . . with the credit card companies. A settlement company can help you solve these issues.
You should make it your goal to settle all of your accounts with the same company. If you transfer your balances between credit cards, you will increase the chances of getting a lower interest rate. This is because the company will be able to get an accurate picture of your current card balance and your payment history. They will be able to see which accounts have higher interest rates and which accounts will need to be settled first.
If you own a business and are having problems paying your business credit card bills, it is important to work with a debt settlement company. This will allow you to get rid of the debt that is hurting your business and help you start rebuilding your credit. A settlement will also prevent your business from being shut down by your creditors. If you are unable to work out a good payment plan with your business owners, they may be forced to file bankruptcy, which can be a huge loss for their business.