Important Credit Facts - Know These Credit Facts Before Contacting a Debt Settlement Service

The economic crisis has caused consumers to lose the ability to pay back debts. Companies owed money understand this, and are helping the consumer by settling debts for far less than they are worth.
By: Mark Jameson
 
April 15, 2010 - PRLog -- If you deal with a debt settlement company, chances are high that you will sign on the dotted line and agree to the settlement deal. Even the best settlement company will never send its customers away. It lays the facts on the table and expects the customer to take the right decision.

William Roberts, editor of http://www.Remove-Debt-Today.com, notes the importance of advocacy for consumers during this economic period:
“The public is experiencing a severe crisis with debt and agencies must be set up for the large amounts of people who will require assistance.”

Do you have good track record of taking sensible and smart financial decisions? If yes, then you would not be facing the current debt problem, would you? Hence, it is important to keep certain points in mind before you start dealing with debt settlement companies.

Firstly, credit card issuers do not offer generous debt settlement deals for small debts. If you owe just $5000, then it is advisable to beg, borrow and arrange for the funds and repay the debt. You can then try to agree upon a very easy and flexible repayment schedule.

On the other hand, if the debt is in excess of $7500 or $10,000, you will find that the credit card issuers are far more generous. Hence, if you do not fit the bill, don't waste your time checking out debt settlement.

Secondly, the association of settlement companies and all other regulatory bodies advice professional service providers not to insist that the individual should stop making repayments. However, most companies prefer a hands off approach. Only fraudulent companies advise the individual to skip.

Other companies simply explain the benefits and leave the final decision on the hands of the customer. As an individual, you have the option of purposefully skipping your repayment. The only thing is that the settlement company will neither advise you for it nor advise you against it.

Understand the risks before you finalize the deal. The last thing you want is to face the tremendous pressure of credit card companies and not even have the settlement company to blame.

Finally, personal negotiations with credit card companies are not impossible. That is right. Never trust any settlement expert who advises you never to get in touch with your creditors. Such a move is a very dangerous one.

You are not trying to con your credit card company into agreeing to the settlement deal, are you? You are simply explaining the pros and cons and pointing out that a bankruptcy is going to be profitable for nobody.

In such a scenario, there is no need to hide from your creditors as long as they have agreed to the settlement deal. Not staying in touch with your creditors may prove very harmful in the long run.

http://www.Remove-Debt-Today.com

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If you are one of the millions of Americans who has over $10,000 in unsecured debt, it is time you found out about the debt settlement options available to you. Due to the current economy an overwhelming amount of people are in debt, creditors are having no choice but to agree to debt settlement deals.

http://www.Remove-Debt-Today.com
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Source:Mark Jameson
Email:***@free-debt-relief-advice.com
Tags:Debt Relief, Credit Card Debt, Debt Settlement, Small Business Debt Relief, Bankruptcy, Eliminate Credit Card Debt
Industry:Debt relief, Personal finance, Debt management
Location:Los Angeles - California - United States
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