Debt Settlement: How to Pay Off Credit Card Debt

June 20, 2010 - PRLog -- Do you know how to pay off credit card debt when you are in over your head? Do you know where to turn for help? You can actually get out of debt on your own but it requires a lot of planning and the dedication to cut back on your expenses and increase your income. If you want it bad enough and the resources are available, this is the way to go.

How to pay off credit card debt can be done a few different ways. Credit counseling and debt settlement are the 2 most popular options for debt relief. Credit counseling is a great option if you are able to work out a repayment plan through the counseling company with the lender. They normally want a 2% payment monthly and not everyone can afford that unfortunately. Credit counseling will save you a lot of money in interest charges as well as time in repayment. Your interest rates are reduced and you make one payment each month to your credit counseling company and they take care of the rest.

Debt settlement is also a type of debt elimination that is being utilized a lot. This is something I would be very cautious about using. With debt settlement, your balances are reduced through a negotiation process with the lender. If you are able to pay the negotiated amount at the time of the negotiation, you will probably be okay. But most debt settlement companies have you make monthly payments to an escrow account and when there is enough money to pay the negotiated amount and then the lender is paid. The problem with this is sometimes this takes several months and in the current economy, the lender may not be willing to wait. Some lenders will take legal action after a certain period of nonpayment.

There are pros and cons to both of these methods. I recommend you get a quote from a nonprofit credit counseling organizations and see if they can help you. If they can, you will probably be out of debt in about 5 years. Some credit counseling companies handle both debt counseling and debt settlement and will set you up in the program that will work best for your financial situation. Some will even do bankruptcy referrals if that is what is necessary. Knowing how to pay off credit card debt isn’t always easy, but there are people that can guide you through the process of getting out of debt.

For more information visit http://www.debt-settlement-processing.us or call us directly. Here is another debt settlement processing article http://www.prlog.org/10748108-debt-settlement-to-get-cred... for your reading enjoyment.

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