Q. Am I eligible for a credit card debt settlement?

A. CreditCardDebtNegotiations.com recommends only consumers and small business with unsecured credit card debt of at least $10,000 hire a debt settlement company to negotiate a credit card debt settlement. If you have less than $10,000 in unsecured debt and would still like to eliminate credit card debt it would be wise to contact your creditors by yourself instead of utilizing a debt settlement company.

Q. Is CreditCardDebtNegotiations.com a debt settlement company?

A. No. CreditCardDebtNegotiations.com is not a debt settlement company. We are affiliated with several top performing debt settlement companies that have met or exceeded our high quality standards. We are simply a consumer based service that is looking to raise the bar in the debt relief industry and provide consumers a better deal when settling their credit card debt. Our network of associated debt settlement companies is vast and expands across the United States. CreditCardDebtNegotiations.com is able to use our leverage in the debt relief industry to provide consumers the best of the best when it comes to debt relief options. Using CreditCardDebtNegotiations.com will surely help consumers avoid inexperienced or even illegitimate companies.

Q. Why would creditors agree to eliminate credit card debt with a settlement?

A. The simple answer is that credit card companies would rather have some of their money back than none at all. Credit card companies and other holders of unsecured debt agree to debt settlement arrangements when they believe it is in their best financial interest. In most cases creditors come to this conclusion because the person requesting the debt relief appears to be a legitimate candidate for bankruptcy. Knowing that in the majority of bankruptcy cases they would receive nothing, credit card companies opt to take a discounted debt settlement on the balance rather than receiving zero dollars in a bankruptcy case.

Q. Why should you use a debt settlement company for credit card debt negotiation?

A. Debt settlement companies are much better positioned to successfully negotiate credit card debt due to their established relationships with various creditors. Credit card companies and other holders of unsecured debt are very worried about collecting on their delinquent accounts. Debt settlement programs employ skilled negotiators to negotiate credit card debt or other unsecured debt with your creditors. They know exactly how far to push creditors to eliminate credit card debt. The best debt relief programs will also handle all the communication with your creditors so you do not have to deal with those annoying collection calls. Basically, if you have over $10k in unsecured credit card debt it almost always makes financial sense to employ a debt relief program especially in this market where the majority of creditors are in a weak financial position.

Q. Will a credit card debt settlement affect your credit score?

A. The short answer is yes. You credit score will temporarily be lowered for 1-2 years. This is much better than bankruptcy however which typically lasts 7 years. But understand you need to be realistic. If you are already behind on payments, or you might be shortly, your credit rating is already impaired because you have too much debt compared to your income. This is known as a high debt-to-income ratio. To be considered a credit worthy consumer again, you must drastically reduce or eliminate your debt, thereby reducing your debt-to-income ratio. So, while your credit score may be negatively affected in the beginning using a debt settlement company, it will become much better 1-2 years down the line after you have eliminated your credit card debt.

Q. What would a typical credit card company settle debt for?

A. A typical creditor of unsecured debt would settle for 40 – 60% of your balance although results vary considerably case by case and through different creditors. So if you have a credit card balance of $10,000, you could expect to settle for $4,000 – $5,000 on average with the help of a top performing debt settlement company. Major credit card companies also currently have a large influx of federal stimulus cash that they are using to offset their losses which result from debt settlement. There really has never been a more advantageous time for consumers to eliminate credit card debt.