If you are surrounded by so much credit card debt that you don’t know how to pay them off, your best bet should be to contact a debt settlement company. As this time of life, your only option is to negotiate your bills with your credit card company. Negotiating with this credit card company is what the debt settlement company does. If you tried to negotiate with these companies on your own, you might get nowhere since you are not experienced at negotiating.
What the debt settlement company does is to try and come to an agreement with your credit card company to accept a lump sum payment instead of the usual monthly payment or an agreement favorable to both parties. The lump sum payment is usually a reduced amount of your original balance.
It is more wise to get in contact with a debt settlement company than to fall into bankruptcy. Bankruptcy can be totally avoided. Debt settlement companies can provide you with the relief you need from all the calls you would normally be getting from credit cards companies and especially collection agencies. Those who decide to go into bankruptcy do it more from an emotional point of view.
A lot of people feel tired and frustrated because they can not continue to bear the heavy yoke of bills on their neck. The end results in bankruptcy because they can not bear it any longer. If you persevere and apply wisdom, you will be able to come out of your debt crises in no time. Moreover, the federal court and most creditors and financial institution are not in favor of bankruptcy.
As far as a debt settlement agency is concerned, it is more of an alternative than filing for bankruptcy. The debt settlement agencies collect your financial data and customize it for you. This is done to provide an easy route for you to eliminate your debt. If you are satisfied with the customized data, the debt settlement company will advice you to stop making any further payments on your credit cards. They consolidate your bills into one affordable monthly payment for you.
The new monthly payment will be a accumulation of the amount to be paid to your creditors and the service fee which you are going to be charged, which could be any were from 5% to 15%.
It is not that difficult to find debt settlement companies. It might take some research to weed out some of them, but ultimately, you will find a good one. They are also debt relief networks that can match you with a company.