~ What You Need To Know
When most consumers are ready to research their options for creating financial freedom for themselves they usually turn to the internet and Google search “credit card help”. debt settlement companies are one of the services that you will find while doing your research.

But you must remember that doing this research can be tricky. All debt companies, such as debt counseling, debt consolidation and debt settlement, all these services get mixed into one and you have to sort through all of this, because they are all very different. With credit counseling and debt consolidation you are required to pay an involuntary “donation” every month and your current monthly payments to your creditors are debited out of your checking account and transferred to your creditors with a proposal for a lower interest rate. Credit card debt settlement is very different. Credit card debt settlement as with credit counseling does have risks, but usually well worth it.

As a consumer looking for help you need to be well educated about how credit card debt settlement works and what will be required of you while in the program.

• Listen to what debt settlement companies tell you
• Make sure you have all contact information for the company you are enrolling in
• Only work with a debt settlement company that allows you to have control of your savings account while in the program.
• Make sure the debt settlement company has given you a detailed outline of the monthly payments and fee’s for the program.
• debt settlement is a process and will take time to complete. Many factors are included in the debt settlement process, such as your ability to pay, your financial hardship, the age and balance of the account.
• debt settlement companies are compensated by a fee that is typically worked out as a portion of the settlement. Keep in mind that including fee’s you will still only pay about 50 percent or less of total amount owed.
• Some debt settlement companies are law firms, some are not. Private debt settlement companies usually get better debt settlement offers because you are not retaining a high priced law firm.
• Remember, as the customer you always have the right to express any concerns and comments to the management of the debt settlement company.

Credit card debt settlement is beginning to become increasingly more popular. The reason being more consumers are spending thousands more dollars on their credit cards, than in the years before. So, if you are considering debt settlement to gain financial freedom there are all these things to consider.

1. Understanding The Basics

First, we need to make sure you completely understand that credit card debt settlement is, and what it is not. Credit card debt settlement is not having your creditor’s write off your entire debt without paying anything. You have to pay a percentage of your balance and in exchange for the payment the company will write your debt of as “paid”.

The top question is how much will you have to pay? What you pay depends on three things: how much money you owe, your personal financial situation and your creditor. With most creditors the amount they will settle for is somewhere between 30 and 50 percent of the total balance owed. For instance, if your debt is $3000 you can expect to pay between $900 and $1500.00 for credit card debt settlement. But, you have to remember that some companies will settle for as little as 15 percent and as much as 95 percent.

1. Research, Research, Research

By now credit card debt settlement probably sounds good. I mean, who wouldn’t want to pay off their credit card debt for only a fraction of what they owe. But, the most important thing is to research the company before you go all in. sometimes it’s not as easy as it sounds. First, a debt settlement company cannot promise you a set savings per creditor until they have talked with your creditors and explained your current financial hardship situation. So if a debt settlement company promises you up front it should be a red flag.

A true legitimate credit card debt settlement company will be up front about the fact that they cannot guarantee you a set percentage off settlement until they have spoken to and negotiated with your creditor.

1. Your Credit Rating

debt settlement can affect your credit. However, that doesn’t mean it will affect it negatively. You have had good credit up until now and you don’t have many, if any late payments on your credit report, but your credit score may go down after you enroll in debt settlement, but the good news is it will drastically improve as you pay off your debt. With that being said if you have outstanding accounts in default with late payments, debt settlement will improve your credit score more than is imaginable.

1. You Need The Money

Before getting all excited about credit card debt settlement you must remember that even though you are no longer paying your creditors you have to put money into a savings account through the debt settlement company monthly in order to pay off your credit card debt. The debt settlement company will negotiate to pay in a lump sum or over a monthly period, directly from your savings account.

1. Finally, The Fee

When you have done all your research and found a debt settlement company you are comfortable in, you will pay a fee for their services. Considering that most of consumers can’t negotiate as well as a debt settlement company can, the fee is well worth it. If a company asks for a large amount of money up front before getting a contract don’t fall for it. Unfortunately as always there are scams out there. Don’t fall for them.

In closing, while credit card debt settlement can be a bit time consuming, confusing and sometimes even stressful, it is a great alternative to bankruptcy. If you like millions of other consumers find yourself in a position of no longer being able to keep up with your payments or pay them at all; a credit card debt settlement may be the solution you’ve been looking for.

For more information on credit card settlement check out www.debteliminationamerica.com , a website that specializes in getting your out of debt and back into financial control.

Misty Rountree