Is Debt Settlement a Good Solution to Credit Card Debt?

Debt settlement is an excellent solution to credit card debt. It can help you become debt free in 18-36 months, save thousands of dollars in interest and late fees, and help you avoid bankruptcy. While debt settlement is a very aggressive, effective debt relief method, it may not be the correct solution for everyone. If you are contemplating debt settlement, you should consider the following criteria to see if you fit the profile.
1. You are struggling to stay current or are already falling behind. If you are having to skip payments or are continually making late payments, this is a sign that things are only going to get worse. Paying extra late fees and interest fees monthly is only making you pay more money that you don’t have.
2. You have a legitimate hardship. Whether it be medical reasons, loss of job, family issues, or unexpected expenses, you need to have some sort of hardship to explain why you are in financial trouble.
3. You want to avoid bankruptcy. If your goal is to meet your financial obligations while avoiding the need to file for bankruptcy, then debt settlement provides an excellent alternative.
4. You have available funds to settle accounts or can save between 1.5-2% of your debt monthly. In order to negotiate accounts, you must have some source of funds to pay the settlement. Many individuals borrow money from relatives or take out home loans, while others can make monthly contributions. You need to be realistic about the funds you can or will have available. It is illogical to think that a debt of $20-30K can be effectively negotiated if you are only able to save $150-$200 per month. If available funds are a true problem, you might consider bankruptcy as a more correct choice.
These are a few of the primary criteria that make up the profile for someone who would be successful in a debt settlement program. Please remember that each situation is unique and should be handled accordingly. If you are finding yourself in a financial situation that requires you to consider debt settlement as well as other debt relief options, I recommend that you speak to a professional. He or she may be able to provide you with more specific information regarding your situation.

By Scott Wallitch

From: ezinearticles.com/?Is-Debt-Settlement-a-Good-Solution-to-Credit-Card-Debt?&id=774163