What you need to know about debt negotiation on credit
by Jeff Lakie
Debt negotiation on credit cards is often referred to as credit
card debt settlement. Whenever you make a credit card payment-
or even pay your utility bills- it usually gets reported to one-
or all- of the three main credit agencies. This activity will
influence your credit score, which will determine your future
credit status. But what do you do, if you find that you can no
longer make the minimum payments on your credit cards? If your
accounts are behind, or about to fall behind, you can turn to
a credit management company, that will help you with your debt
When you enrol in a debt negotiation programme for your credit
cards, you can stop making payments directly to the credit card
companies and begin to pay the debt settlement company directly,
which can be a relief in itself and perhaps even help you to save
money. The way it works is simple. The debt management company
works with your creditors to come up with a lower payoff for your
accounts. You, in turn, make one monthly payment to the management
company, which holds the money in a trust, making a one time payment
on your credit accounts, at the pre-arranged time.
Debt negotiation on credit cards have helped many individuals
to find peace of mind and relief from mounting credit card debt.
However, it is important to realise that being enrolled in debt
management will lower your credit score, whilst you pay back the
debt management company.
So, how do you find a reputable firm to negotiate your debts for
you? There are many sources to help you get started, such as the
Federal Trade Commission. It is very important to remember that
you can rebuild your credit in the future, so you should think
very carefully about how you proceed with debt negotiation. There
are many companies out there that will promise you a clean credit
report for a few hundred dollars. Many of these offers are either
completely illegal, scams- or both. So, make sure that the company
that you will be dealing with has your interests in mind, when
dealing with debt negotiation on credit cards.
About the Author
Jeff Lakie is the founder of Credit Card Resources a website providing
information on credit cards.