How To Settle Credit Card Debt

Credit card debt has become overly burdensome for many Americans. This is partially due to the fact that many people were living right up to their level of income, with nothing left over. Now, unemployment has hit double digits, and credit card issuers have reacted by raising interest rates and minimum payments, while also lowering credit limits. This has left many consumers wondering how to get rid of their credit card debt.

Of course, the best way of settling credit card debt is to simply pay it off. The only problem with this is, most of us do not have the money to do this, so we must try another way to eliminate credit card debt.

One way of settling credit card debt is to ask credit card companies to reduce your interest and your minimum monthly payments. Most companies are not interested in doing this for an individual, and whatever help they offer is nominal. Also, it is very time consuming calling each of your creditors.

The best way to settle credit card debt is to contact a debt settlement company. To get started, go to the Internet and search for debt settlement. Your search will return literally hundreds of listings of lenders that specialize in this type of transaction and will compete for your business. These companies in many cases already have good relations with your credit card issuers, and will more easily be able to negotiate for you. In most instances, they will not only be able to reduce interest rates and minimum payments, but will also be able to get 40- 60% of the debt forgiven.

The next thing you must decide on is which of these debt settlement specialists you will use. You should pick a minimum of three from the list and investigate them. Contact them and find out exactly what each one can do for you. After this, pick one or two that have satisfied you with answers to your questions.

The next step is to call the Better Business Bureau and find out if there are any complaints against the companies that you have chosen, and if so, how the complaints were handled.

If you are satisfied with your investigation, choose one of the companies. Contact them and let them get started on contacting your creditors. They will basically do all the work for you, and you will be well on your way to settling your credit card debt.


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