Debt settlement is attractive because of the debt reduction goal but consumers should consider the pitfalls that could affect them.
Los Angeles - Long Beach, CA (PRWEB) September 09, 2013
Credit Card Consolidation Loan, a debt relief website that provides relevant information about credit card debt, reveals the possible dangers of debt settlement. The article published on the website does not lash out on this debt relief program but uses the opportunity to give out a warning to consumers so they can use it successfully.
The article is titled “Danger Of Debt Consolidation On Credit Card Debt” and was recently published early this September. It focuses on the effects of this debt relief program on the financial situation of the consumer. It begins by stating how debt settlement is attractive because of the debt reduction goal but consumers should consider the pitfalls that could affect them. Although it is very effective, not recognizing the pitfalls could affect the success of this debt solution. The article explains the importance of understanding the process of the debt solution they will pursue because, according to the post, life does not really end after debt relief.
Credit Card Consolidation Loan reveals that the risks of settling credit card debt includes damaging their credit score and increasing the debt amount of the consumers. This is caused by the intentional defaulting on their payments so that they can prove to the creditor that they are in a financial crisis. Not only that, the article also states that the consumer will be at the mercy of the creditor. If they do not agree to the settlement offer, the process could drag out. Lastly, there is still the possibility that the creditor will file a lawsuit against the consumer.
Having said all of these risks, the article does not leave consumers empty handed. Since they have already provided the pitfalls, Credit Card Consolidation Loan hopes that consumers will be cautious and prepared when they decide to pursue debt settlement.
To aid them in making this debt solution successful, the article provided the following tips to make debt settlement successful.
1. Be ready with the settlement fund. When the consumers have the funds to pay their debt, the whole process will be a lot faster. That way, the creditor will not have to wait too long for the settlement amount to be ready.
2. Be sure with the amount that will be offered for the settlement. If the agreed amount is not met, it will not bode well for the consumer’s current balance.
3. Document everything. The article encourages consumers to document all agreements before sending a payment to the creditor.
4. Practice the right financial management skills. Even as the consumer negotiates their debt, the article encourages them to practice financial management skills to help them stay out of debt.
To read the whole article, visit Credit Card Consolidation Loan or click on this link: http://creditcardconsolidationloan.org/dangers-of-debt-settlement-on-credit-card-debt/.
Credit Card Consolidation Loan is a debt relief website that offers debt consolidation loan to consumers burdened with credit card debt.