Debt settlement has come as a boom to those who have huge amounts in outstanding loans. Many owe credit card companies thousands of dollars without any hope of ever paying back, due to their financial circumstances. That angora sweater may have looked good at the time and it was easy to pay with the handy credit card, but when the bill came in, it just did not seem to be worth it.
But now the consumer can fight back through debt settlement, to which the companies are proving vulnerable. The firms, which appear to be out to squeeze you dry, have to take a back-seat when debt settlement is involved and just have to gnash their teeth and accept as less an amount as possible.
The vulnerability to debt settlement bills is because these companies will get far less than the amounts due in most cases. They get worried when a customer asks for debt settlement as it is seen as a precursor to the client’s bankruptcy in which case the credit card companies would end up with nothing.
However, these firms battle it out to the bitter end when it comes to making a settlement through negotiations. Most are willing to accept between 30 to 50 percent of the accumulated credit card debt while the more hard-nosed will take no less than 90 percent. In rare instances will a credit card firm accept less than 30 percent as the settlement amount?
They will also insist on looking through your financial statements and list of assets to see for themselves whether the person is genuinely facing financial difficulties. Most credit card firms will ask for a one-time lump sum payment to settle the debt amount after negotiations. Others offer short repayment periods ranging from three to six month, depending on company policy coupled with the financial status of the person looking to settle the dues.
For companies like Amex, MasterCard and Visa, any money paid back is better than nothing. But it also o beats fighting it out with the customer in a court, where legal fees can dwarf any outstanding card bill
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