Credit Card Consolidation Loan Publishes the Do's and Don'ts in Debt Settlement

• 

With credit card debt, the high interest and other charges can quickly grow the balance and that is something that consumers must avoid lest debt relief becomes harder to achieve.

Philadelphia, PA (PRWEB) August 25, 2013

Credit Card Consolidation Loan focuses on credit card debt settlement in the latest article posted on their website. The title of the article is “Do’s And Don’ts In Credit Card Settlement” and it highlights how consumers can make debt settlement an effective solution.

Like all debt relief programs, debt settlement follows certain rules and this is what Credit Card Consolidation Loan wishes to impart to their readers.

The site believes that people in debt must act quickly to keep their debts from getting worse. Especially with credit card debt, the high interest and other charges can quickly grow the balance and that is something that consumers must avoid lest debt relief becomes harder to achieve. The whole idea is to stop wasting money on the interest.

The article focuses on credit card settlement as a way to get out of this particular debt situation. Credit Card Consolidation Loan describes it as negotiating with creditors to allow consumers to pay only a portion of what they owe and have the rest forgiven. To get them to agree, the article encourages consumers to convince the creditor that they are in a financial crisis.

To make this debt relief option successful, the article lists the do’s and don’ts - starting with what the consumer must do in debt settlement.

1. Act immediately. The article urges consumers to call the creditors at once and try not to wait until they charge off the credit account.
2. Stretch patience. In most cases, creditors will not agree to forgive a portion of the debt and they will say no a couple of times. The article advises consumers to just be patient and keep on trying to get the creditor to agree.
3. Prepare necessary documents. Some creditors will look for proof of the consumer’s financial crisis. Consumers must show what they requested without giving away too much details about their own personal accounts.
4. Document all communications. This is to protect consumers from abusive collectors and so they can also keep track of what they have agreed upon so far.
5. Research and understand the FDCPA. The Fair Debt Collection Practices Act seeks to protect consumers against the abusive practices of debt collectors. The article encourages consumers to know this law to give them a better idea on what should happen during debt negotiations.
6. Stick to the settlement agreement. When the consumer and creditor get to an agreement, the former is advised to follow it strictly. Otherwise, the agreement may be cancelled by the creditor.

After discussing what must be done during the debt settlement process, the article warns consumers about the pitfalls of this debt relief program and what they should not do to avoid it.

1. The consumer must not force DIY debt settlement if they cannot deal with the stress involved in the process.
2. Consumers must not ignore the negative consequences of the debt relief program. These include the taxable forgiven debt and the lower credit score.
3. The consumer should also be careful about making commitments. If they cannot afford the proposal of the creditor, they should not accept it.
4. Consumers are discouraged from thinking that the creditor will immediately agree to the settlement proposal.
5. Consumers must not think that debt settlement is the only option. There are other programs that can be used and Credit Card Consolidation Loan encourages consumers to seek them all out.

To read the rest of the article, visit Credit Card Consolidation Loan or click on this link: http://creditcardconsolidationloan.org/dos-and-donts-in-credit-card-settlement/.

PDF Print