When we end up with credit card debt, there might not seem to be a way out.
Debt settlement of our credit card may appear to be the only way out of debt. It is important to remember that these credit card companies know what they’re doing and there are some debt settlement credit card tips that you should be aware of before you turn to a debt settlement company.
Debt Settlement Is Favoured
When you are thinking about settling your debt, a credit card tip to remember that settlement is not the only option – you do have other choices with handling your credit card debt.
Some good options for reducing credit card debt are creating a better budget, liquidating some assets, or getting a small loan. The only problem with these options is that they take time. And that can seem scary when debt is all you can think about.
But in the long run, choosing one of these options over settlement will save you a lot of money. It will also help your credit score more than a settlement will. If you choose one of these options, concentrate on the savings that you will make in the end – not the amount of time it is taking you to get there.
Debt Settlement Is A Right
As a credit card holder, you do not have a right toward asking for a settlement. Often, a lot of concessions are made, for example, penalties are waived, fees are lowered, credit limits increased. Customers sometimes get the impression that they have the right to receive this kind of goodwill and will request a settlement.
Another tip to remember involves asking for a settlement is not restricted – but neither is a card company’s ability to turn down the request.
Debt Settlement Companies Are Pro-Consumer
Although settlement companies are sought to help their customers reach settlements for their credit card debt. This is true, but it does not mean that they are working in their clients’ best interests. These guys need to make money too!
Settlement companies can and often do charge their customers a huge number of fees to help them clear their credit card debt.
It is not unheard of for settlement companies to set up terms with a customer, including a payment schedule, fees, and interest. This essentially turns them into an even worse lender than the card companies!
Settlement of your debts is not your only option. It is very important to remember this, because settling your debts on your own or using other means instead of settlement can be a lot more beneficial to you and to your credit score.
Balance Transfer Credit Cards Comparison
Rates last updated September 27th, 2016.
- American Express Explorer Credit Card
10,000 Membership Rewards Bonus Points + 0% on balance transfers for 12 mos. Offer ends 30 Nov 2016
August 26th, 2016
- HSBC Platinum Credit Card
$0 annual fee + 0% for 15 months on balance transfers offer extended until 31 December 2016
September 1st, 2016
- Virgin No Annual Fee Credit Card
Balance transfer offer has been extended to 31 October 2016.
September 26th, 2016