Credit Card Debt Settlement Services

Using Credit Card Settlement Services:
How It Works and Who To Use

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Credit Card Settlement Companies (US Only)

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Debt Management Companies

Find Out How To Negotiate Credit Card Settlements Yourself

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On this page you will find out what the different options are for eliminating credit card debt and get advice to help you decide which one might suit your situation best. I do not offer any settlement service myself, but will be recommending the best companies and guides for whichever route you choose.

In very broad terms, there are two main routes open to you for credit card debt settlement. These are either using the services of a professional company to help you, or doing it yourself direct with the card companies. The do it yourself option is largely the same wherever you live, so I will cover that in the next section of this page. The use of debt settlement services does have some variations within it, and does vary a bit depending where you live, so I will split that into sections as follows:

The most common approach to credit card debt is to use a debt management plan and that is essentially the same in the UK as the US, so I will cover that in one section. The options for more serious debt situations, however, will vary with your country of residence, so I will provide separate advice for US residents and UK residents.

Negotiate Credit Card Debt Settlement Yourself

Thousands of people each year choose to negotiate debt settlements directly themselves in order to save on paying a professional company for their services. A good negotiator will on average get agreement to write off over half of your debts. It is perfectly possible to achieve this sort of result yourself, provided you have the appropriate advice and guidance.

Being willing to have a go, or being a tough negotiator, are not enough to ensure that you will reach a good settlement deal. Unless you understand the process that card companies go through and how they treat bad debts, you are unlikely to manage to get their agreement to any settlement. Your usual deal making skills are not going to help you with debt settlement, as your success really depends on having a good enough understanding of the settlement process to enable you to know what to say and, crucially, when to say it.

There are a huge range of guides and courses available that claim to tell you how to achieve successful credit card debt settlement, but do take care because many of these are not detailed or practical enough to be of any real value. I have listed what I think are the best ones on the main debt negotiation page of this site. The recommendations cover a range of options to give you a choice from very inexpensive but detailed guides, to more in depth and fully supported training.

Credit Card Debt Settlement Services - Debt Management

Debt management plans are the most widely used and successful way to get rid of credit card debt in the UK and US. It is important to understand the difference between debt management and settlement. Settlement involves getting the agreement of the credit card company to settle the debt for an amount that is less than the full outstanding debt. Debt management is a payment plan that allows you to change the terms of your repayments so that you can still pay back the debt in full.

A credit card company will not agree to debt settlement if you have enough money coming in to repay the debt in full. They will only settle if they believe that is the most they are ever likely to get. Debt management is a structured way of paying back debts for people who have a regular income and can afford to make a reasonable payment towards their debts each month.

It is important to only approach debt management companies that you know are reputable, so that you can be sure of getting reliable advice on whether it is the best option for your particular situation. There is a list of recommended companies on the main debt management page of this site, which includes the best UK debt management companies and the best US debt management companies.

Credit Card Debt Settlement Services:
For Serious Debt Problems In The US

The provision of credit card debt settlement services is a widespread practice in the US. Before a debt settlement company can decide whether they can help you, they will examine your financial situation to see if your circumstances are appropriate for this solution. Creditors will not agree to a reduced settlement with someone who can clearly afford to repay the full amount, so this option only works for people who are in real hardship and struggling to keep up with debt payments. People that debt settlement works for are typically considering bankruptcy or perhaps being threatened with legal action.

All debt settlement services companies will need to be paid for what they do, but some of the better ones only take a proportion of what they manage to save you as their fee. This is an important assurance that means you cannot lose out financially. The danger is that there are a lot of less reputable and less effective companies that just charge substantial up front fees and do not achieve the settlements they promise.

It is best to stick to reliable and trusted companies with a good track record. You can find a list of recommendations for some of the best companies offering credit card debt settlement services on the main debt settlement page of this site.

Credit Card Debt Settlement Services:
For Serious Debt Problems In The UK

There are no such things as debt settlement companies in the UK, because there is no need for them. Debt management companies have another option they can offer which essentially achieves the same result as debt settlement. An IVA, or individual voluntary arrangement, is a formal agreement and is a scheme that was created to provide an alternative to bankruptcy. You make a regular monthly payment towards your debts for a fixed period, after which any debt still outstanding is written off.

Using an IVA, people in very serious debt situations are able to write off up to 70% of their debts. Needless to say, not just anyone can get an IVA. You need to have at least £15,000 worth of debts and you must be struggling to keep up with your payments. IVAs are available in England, Wales and Northern Ireland. There is an equivalent solution in Scotland called a Protected Trust Deed.

You can find a list of recommended IVA providers on the main IVA page of this website.

Credit Card Debt Settlement

Services And Companies

Using Credit Card Settlement Services:How It Works and Who To Use

Go Straight To List of RecommendedCredit Card Settlement Companies (US Only)

Go Straight To List of RecommendedDebt Management Companies