Finance, Loan, Debt and Credit.

March 19, 2018

Credit Card Debt Settlement Warning – Rules To Avoid Trouble

Many people with credit cards find themselves seeking credit cards debt settlement to help end the debt spiral that causes bankruptcy in thousands of people every year.

A settlement can end enormous interest payments that can add up to be more than double the original sum borrowed. However, there are some ways that consumers can run into trouble before and after they try to settle their existing debt. To avoid these problems, there are several things to keep in mind in order to get out and stay out of debt for the long term.

Hector Milla Editor of the “Credit Card Debt Consolidation” website — — pointed out;

“…When negotiating a credit card debt settlement, be careful to keep records of all conversations. This includes letters, phone calls and any meetings that occur. To ensure that an agreement is exactly what it is supposed to be, it’s important to have everything in writing. If the written version of the agreement is different from the verbal version, having the date of the phone conversation, the time it took place and the name of the agent who made the agreement can help with getting the written agreement corrected…”

Avoid falling back into more debt after the credit card debt settlement has been made. Consumers who continue to run up credit card bills after their agreement has gone through and some of the sum has been discharged may find themselves right back in the same position, and this time the company may not be as forgiving. Instead, consumers should work on curtailing spending to avoid falling into the same trap that may have no escape. Consumers should consider cutting up some of their credit cards, seeking out lower-interest cards or taking on a part time job to stay out of debt after the original debt has been paid off.

“…Don’t promise more than can be paid back. Consumers who are able to get a credit card debt settlement must pay the agreed amount on time to keep the agreement in force. Missing the payment or payments can nullify the agreement, making the borrower liable for the entire debt instead of just the settlement amount. When making the arrangement for a reduced amount, offer to make payments if the entire amount can’t be paid all at once. It is better to be able to uphold a settlement amount that is larger than to miss a payment for a smaller one and have the entire deal voided…” H. Milla added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

March 14, 2018

Credit Card Debt Settlement And Credit Score – Avoid Mistakes

It is easy to make mistakes when it comes to finances because there are so many options and so many people telling consumers what they should be doing with their money.

One of the few things that everyone agrees on is that getting bills paid on time and as agreed is one of the most important things for staying in good financial shape and keeping a high credit score. In some cases, a credit card debt settlement can save a credit score from dropping so low that credit becomes impossible to get.

Hector Milla Editor of the “Credit Card Debt Consolidation” website — — pointed out;

“…Getting a credit card debt settlement is something that does impact a credit score. It will lower the score a little, and some consumers worry about this impact on their credit history. However, what many borrowers don’t take into account is that their credit scores will be far lower if they don’t get a settlement and instead get so far behind that they are sued by their credit card company or have to file bankruptcy because they can’t pay the bill. These have far worse impacts on a credit score, and it takes far longer to recover from them after they happen than a simple debt settlement…”

One of the worst mistakes that a consumer in a poor financial position can make is to wait too long to find out about credit card debt settlement. Though it is often a choice that is a last resort, borrowers should not wait until their financial position is so poor that they are unable to make a reasonable settlement offer to a credit card company. Rather than continuing to struggle to make sky-high monthly payments and paying late fee after late fee, starting the negotiation process can put an end to it all and allow consumers to get a fresh start on their debt before it gets out of hand.

“…For consumers who do choose this route, making a fair offer and taking the time to negotiate it to the best rate possible can be helpful for getting the rate as low as possible. Making a lowball offer that would not be reasonable to a card company is not likely to be accepted, and it may make the negotiation process more complicated. To avoid this mistake, consumers should look at the amount that they can reasonably pay to a company without making a late payment and offer this amount…” H. Milla added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

March 11, 2018

What Credit Card Debt Settlement Companies Don’t Tell You

Enrolling in a credit card debt settlement plan is a turning point. In most cases, enrollment begins a period of financial recovery and new prosperity.

Participants should reduce credit card minimum payments and slash total finance charges through debt consolidation. The allure of these benefits entices many people to hire a settlement company before adequately evaluating offers. In particular, pay attention to a few common issues that companies may not mention.

Natalia Osorio Editor of the “Credit Card Debt Counseling” website — — pointed out;

“…Consolidation companies charge fees. These fees typically include a monthly maintenance fee to cover administrative costs. In addition, most companies also charge a setup fee to establish a plan. Monthly fees may range from $25 up to $60. The setup fee is frequently equivalent to regular plan payments. For example, if a plan requires a monthly payment of $500 over two years, setup fees of $500 are common. Plans may incorporate a delay of one month before plan payments are required, so that the first payment can be applied towards the setup fee…”

Plan fees increase the cost of repaying credit card accounts. The best companies insure that fees are reasonable and that discounts achieved through settlements justify all fees charged. Few companies reveal the percentage of fees charged in relation to total payments. This percentage is easily calculated by dividing total fees by total plan payments. In one sense, fees are the cost of obtaining discounts through a professional negotiating service.

Settling debts results in repayment of less than the original principal amount owed. Settlements are voluntary, yet lenders nevertheless frequently report settlements to credit reporting agencies. Most often, credit reports include a statement that an account was compromised by agreement. Future lenders interpret this reference as a charged off loan.

Anyone can negotiate payment reductions directly with a lender. The results of negotiating personal accounts are mixed. A degree of expertise is required to motivate lenders who may not trust an account-holder’s personal explanation of financial difficulties. Alternatively, professional negotiators develop relationships with credit card companies over time. In most situations, professional negotiators produce better settlements. Nevertheless, each account-holder may avoid fees and potentially receive the same benefits.

“…Free estimates for costs and benefits are not guaranteed. The final amount of the plan payment is determined through negotiation of individual accounts. A few lenders may demand a higher percentage or principal owed. A few lenders may accept a lower percentage. Estimates are based on experience negotiating agreements with each lender in the past. As a result, the actual plan payments required is seldom equal to the original estimate…” N. Osorio added.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

March 8, 2018

March 4, 2018

March 2, 2018

Can A Credit Card Debt Settlement Affect Your Credit Score?

A credit card debt settlement is often a necessary way to get a debt lowered in time of financial crisis. As quickly as interest piles up on top of the loan principle, many credit card users find that they are unable to make their minimum payments.

This in turn means more fees and higher bills that can’t be paid. If a credit card bill is severely overdue, the negative impact on a credit score can be severe, particularly if the bill is several months overdue.

Natalia Osorio Editor of the “Credit Card Debt Settlement” website — — pointed out;

“…A credit card debt settlement can lower a credit score, but often this lower score is not as low as it cold have been if the overdue amount stayed in collections long term or if the card company had to sue to recover the funds. The credit rating dip may make the score lower than it had been before, but it can actually save it from being as low as it would have been without the settlement…”

For borrowers who have spiraling bills that get too high to pay down, even making minimum payments, a debt settlement can often keep bankruptcy at bay. A bankruptcy is a severe blow to a credit score. It is often called the worst thing that can happen to a person’s credit history. If a settlement is able to stave off a bankruptcy filing, the moderate hit that credit takes from a debt agreement is a small hit when compared to the bomb that a bankruptcy represents to a person’s financial history.

“…After an agreement has been made, consumers can still raise their credit score to what it once was by making their other bill payments on time and not maxing out any other cards. If the bill had caused bankruptcy, getting the score raised again would be far more difficult, if indeed it is at all possible to raise the score significantly within 10 years of the filing. And, a bankruptcy can have a host of other effects on a consumer’s life other than making it almost impossible to get credit. Some employers screen out applicants who have filed for bankruptcy because they believe that it indicates an unwillingness to take responsibility for their actions. By paying back a bill, even if it isn’t as much as it was before the agreement, consumers can show good faith in repaying what they owe as best they can…” N. Osorio added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

February 26, 2018

Yes, Credit Card Debt Settlement Will Affect Your Credit Score

Many people assume that credit card debt settlement won’t affect your credit score.

That would be nice if that were true. Debt settlement will affect your credit score. But there are other considerations to take, don’t let this fact keep you from settling your debt. Here is the truth about what happens to credit score with a settlement offer.

Initial Hit

Natalia Osorio Editor of the “Credit Card Debt Counseling” website — — pointed out;

“…Chances are if you are seeking help to lower your debt ratio, your credit score has already taken a hit. When you start the process of settling a debt, you will be advised to open a savings account. Instead of making monthly payments to your creditor, you will start saving that money so you can send the creditor a lump sum payment. Even if the creditor agrees to these terms, the debt doesn’t disappear. Even if they offer to freeze the account for you, it will still be reported to the credit bureau’s each month. Every month that you miss a payment, your credit score will drop. Expect to see your credit score go down as you save the money to make the settlement offer…”

Settled Accounts

Once you have the money to make a settlement offer, you may think you’re in the clear with your score. Unfortunately even a settled account can affect your credit. The debt will reflect on your credit report as paid- but settled. A settled debt reflects poorly on your report. However, it’s much more desirable to have an account reflected as paid than it is to have it reflected as charged off or opened and unpaid.

The Long Term

“…In the long run, debt settlement will do you more favors than harm. While your overall report will suffer in the beginning, the long term results are much more desirable. Once a settlement is reached, you are able to pay off the debtor and not have to worry about them anymore. Your financial situation will improve, and you can move on to the next debt. Your score will improve over time, and future creditors will see that you were able to pay the debt eventually. This looks so much better than just letting a debt go. Charged off accounts will stick around for up to 7 years, and will keep your score low. A settled account won’t have the same damaging affects. It will allow you to rebuild your credit worthiness, and allow you to avoid the same situations in the future…” N. Osorio added.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

February 22, 2018

Is Credit Card Debt Settlement Legal?

Whenever anything saves us an abundance of money we wonder if it is legal or not. Same is true with credit card debt settlements.

Everyday consumers that are in serious debt overlook this course of action because they do not believe that it is something that is technically legal. This is not an accurate understanding of the process of dissolving debt outside of bankruptcy. In fact, millions of consumers, with the help of different companies (usually financial companies, banks, credit unions or debt settlement specialists), reduce their outstanding debt by huge percentages.

Natalia Osorio Editor of the “Credit Card Debt Settlement” website — — pointed out;

“…Credit card debt and most consumer debt are considered binding contracts. The contract is that you can use the credit if you promise to pay it back. Since this is a contract the only way to legally settle your debt is with the agreement of the company that you owe. In many cases these companies realize that to refuse your settlement offer will result in a potential bankruptcy or charge off. In both those cases, neither party wins. So legally settling the debt with the consumer is an attractive option. When both parties agree to the new arrangement it becomes as legal as the original contract. The original debt is settled for a predetermined amount and that becomes what is expected…”

As with any other contract law, debt settlement has default clauses as well. For instance, if you enter an agreement to settle for 50% and will pay a certain amount per month and default, the default clause might state that you go back to owing the original amount plus all the fees and finance changes that are applicable. It is very important that if you enter into one of these legal debt settlement programs that you adhere to it.

“…Most people choose to work with a professional company that knows the in’s and out’s of resolving credit card debt through this method. These companies will have the contacts, experience and know-how to make sure that you not only get the best deal possible but also understand the implications of the settlement and the default parameters if you fail to meet the agreed upon conditions. As with any other arrangement, a credit card debt settlement contract is legal binding as long as both parties agree to it. If you are severely in debt, this is an option that you might want to seriously consider…” N. Osorio added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

February 17, 2018

Consolidation Of Debts vs Credit Card Debt Settlement

Anyone who has been under the burden of massive credit card debt can tell you that there are lots of options available to individuals in that situation if they are willing to listen.

When it comes to being in debt, you are not alone, because there are lots of companies out there that will help you figure out the solutions and act on them. With that in mind, what exactly are your options? For many people, the first thought is consolidation, because it can buy them some serious time and give them the ability to climb out from under the burden. Debt settlement is also an option and which one you choose really depends upon your given situation.

Aurora Lillo Editor of the “Get Rid Of Credit Card Debt” website — — pointed out;

Who benefits from debt consolidation?

“…People who don’t have a large lump sum to work with are usually better off with a debt consolidation loan. With this type of plan, you take all of those old credit card accounts and you have them paid off by one single lender. With consolidation, you then have one lender to pay and you have one set of details to remember. This is an especially good option for people who get confused or have trouble keeping up with their various dates, amounts, rates, and everything else that goes along with having multiple credit card accounts…”

The thing about credit card debt consolidation is that it will give you a chance to work with a lower interest rate and in many instances it will give you a chance to have a lower payment. If you’d like, you can extend the loan term out and have payments that are very affordable.

Arguing for debt settlement

Settling your credit card debts is a completely different animal and it’s something that will work only for people who have the means to make it work. For these people, this means that you have to have a lump sum of cash to work with in order to pay down the debt. When you settle, you are taking care of the thing in one swipe. There is no lengthy loan term. The advantage of this is that you will pay much less with debt settlement because you will be able to negotiate and pay a lower amount that the total balance of your debt.

“…The creditors like this because they get your money in hand and they don’t have to worry about you defaulting later on. For folks who have the ability to make a lump sum payment, this can often be a very nice way of getting rid of the problems associated with debt…” added A. Lillo.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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