WP_Term Object ( [term_id] => 23 [name] => Credit Cards  [slug] => credit-cards [term_group] => 0 [term_taxonomy_id] => 23 [taxonomy] => questions [description] => Stay responsible using credit cards and get aware of the basic points to manage them. [parent] => 0 [count] => 41 [filter] => raw )

CC Debt Settlement: How it Works?

Back to questions list

As you know, credit card debt settlement is paying the percentage that you owe rather than a full sum that you borrowed. The settlement works the way to affect the credit history. That’s why before applying for this option make sure it won’t harm your history and score.

Get Out Of Debt

When you missed your payment 90 days ago, credit card debt settlement won’t cause harm to your credit score. Still, the settlement won’t work if you are now on your accounts. The main reason is that collectors will never collect anything. Every collector will settle a debt on your credit card only on the part of your full amount.

They collect payments from three to six month first. Then they try to negotiate with your lenders about the debt paying off process. Still, remember that you will still keep on receiving collecting alerts from your lenders as you know pay to your settlement company.

Your every decision and financial operation will be delivered to the financial bureau. So, if you decide to open a settlement account, it will be reflected in your history. In fact, not every lender will deal with a person, who doesn’t follow the agreement between him and the lender. Therefore, be cautious about your payments and try to follow the specific financial plan.

consolidate debts

Find out who will settle the credit card debt for you.