FAQ

How can I determine whether I’m eligible for credit debt settlement?

At CreditDebtSettlements.com, we highly recommend that consumers or 12pt businesses with unsecured debt only hire a debt settlement company if their credit debt exceeds $10,000. Those with less than $10,000 in unsecured credit debt will be better served to contact creditors on their own rather than seeking the service of a debt settlement company, due to the ratio of the company’s fees to actual debt.

Is CreditDebtSettlements.com a debt settlement company?

No. CreditDebtSettlements.com is a service that helps match in-debt consumers with top performing debt settlement companies across the country. We are dedicating to improving the debt relief industry by providing consumers an easier, more effective way to settle their credit card debt. Our vast network of debt settlement companies spans the United States, enabling us to provide consumers with the best, most reliable debt relief options available anywhere. Consumers trust CreditDebtSettlements.com to help them avoid inexperienced and dishonest credit debt settlement firms posing as legitimate companies.

Why would creditors agree to a settlement if it’s just a mere portion of the overall balance?

Very simply, credit card companies would rather recover some money than none at all. Creditors and other holders of unsecured debt consent to credit debt settlement arrangements when they find it in their best financial interest. Most often, creditors reach this conclusion by determining that the person requesting debt relief is a legitimate bankruptcy candidate. Rather than allow the candidate to file for bankruptcy and the creditor to receive zero payment, most credit card companies opt for a discounted debt settlement.

Why should I hire a debt settlement company to negotiate my credit card debt?

Credit card companies and other holders of unsecured debt are constantly concerned about collecting on their delinquent accounts. Debt settlement companies often have good working relationships with these various companies, making them much better positioned to successfully negotiate credit debt settlements than you might be on your own. These negotiators are skilled in knowing just how far they can push creditors to eliminate credit debt. They will also handle all communications with your creditors, ensuring you’ll stop receiving those irritating collection calls. The main point is this: especially in a market where most creditors are in a weak financial position, it is wise to utilize a debt relief program if you have more than $10,000 in unsecured credit card debt.

Will a credit debt settlement affect my credit score?

Yes, your credit score will be temporarily lowered for 1-2 years. However, seeking relief through a debt settlement firm is often a better alternative than bankruptcy, which can lower your score for up to 7 years. It’s important to be realistic about your financial situation – if you’re already behind on payments or anticipate that you will be soon, your credit rating is likely already damaged due to your debt-to-income ratio. In order to re-establish yourself as a credit-worthy consumer, you must take action to significantly reduce or eliminate your credit debt, so as to shrink your debt-to-income ratio. In simpler terms, while your credit store may be lowered during the beginning processes of debt settlement, you will benefit from a much greater outcome later once your credit card debt has been reduced or eliminated entirely.

What kind of results can I expect from a typical credit debt settlement?

Though results differ on a case-by-case basis, most consumers can expect to see a 40% – 60% reduction in unsecured credit debt by pursuing settlement. Accordingly, if you have $10,000 in credit debt, a top performing debt settlement firm can likely settle for an average of $5,000. Currently, major credit card companies are receiving a significant amount of federal stimulus money to offset losses that result from credit debt settlements, making them more generous than ever. There has never been a more ideal time for consumers with high credit balances to reduce or eliminate their debt.