Credit card debt settlement
Does credit card debt settlement work?
If you're carrying high balances on your credit card, you've probably been approached by credit card debt settlement agencies offering to help you with debt resolution. Credit card debt settlement typically involves negotiating with credit card companies and asking them to settle your debt for a lump sum payment that's less than the full amount you owe.
While this sounds great in theory, credit card debt settlement has its risks. Most debt settlement firms are for-profit companies – they have to make a profit somewhere, and usually that comes at a cost to you. There are plenty of credit card debt settlement scams out there, too. Beware of companies asking you to make large deposits or pay hefty fees before they've done any work on your behalf. And a debt settlement plan can wreak havoc on your credit rating.
If you're thinking about credit card debt settlement, it's a good idea to get debt settlement advice from a trusted credit counselor. At American Consumer Credit Counseling (ACCC), we offer free credit counseling to help you evaluate debt settlement solutions as well as other possible paths out of debt.
Free credit counseling for your credit card debt settlement questions.
As a non-profit organization, ACCC provides free credit counseling to individuals and families nationwide. Our certified credit counselors can answer all your questions about dealing with credit card debt, including the pros and cons of credit card debt settlement arrangements vs. a credit card consolidation loan or a debt management plan.
In addition to credit card debt advice, we'll work with you on a comprehensive analysis of your financial situation and lay out all the options available to you for paying off your debt. Our counselors are experts in helping you choose the best plan for becoming debt free, based on your financial needs and your goals for the future.
Debt management: an alternative to credit card debt settlement.
In addition to free credit counseling, we also provide low-cost services for managing your debt. One of our most effective strategies is our debt management plan, an inexpensive alternative to a credit card debt settlement arrangement.
It works like this: rather than making multiple payments to lots of credit card companies every month, you make a single easy payment to us and we pay all of your creditors on your behalf. That means you'll have fewer payments to worry about and your bills will be paid on time every month. And we'll work with your credit card companies to seek reductions in the finance charges and interest rates they're charging you, reducing the total amount you owe so you can pay it off more quickly.