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| Settlement Debt Negotiations Eliminate Credit Card Debt |
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| Written by James Montgomery |
| Wednesday, 15 April 2009 08:48 |
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Credit card debt is causing you nightmares. Your stomach is turning over and over because you cannot pay the minimum card payments, much less pay the cards off. Settlement debt negotiations can eliminate credit card debt. Banks and other regulated lenders must charge off a retail loan, like credit cards, when it becomes 180 days past due. You probably do not know that. Now that does not mean that the credit card loan is not still owed by the debtor but it means that the loan has become almost worthless to the bank. Banks normally sell the credit card loans to a collection agency. Collection agencies pay for the credit cards balances at pennies on the dollar. For fear of the calls, letters, etc. from collectors, debtors usually do not think of just not paying their credit cards . They also have been told that their credit will be ruined with credit scores permanently impacted. What the credit card companies don't tell you is that they would rather settle with you for a few more pennies on the dollar than sell the credit card loan to a debt collector. You see selling to a debt collector allows the investor who bought the debt to make money, not the credit card company or bank. The bank or credit card company is open to settlement debt negotiation because it makes them more money than their other alternatives. Since most debtors go bankrupt if there is no settlement, the bank get nothing but pennies. So the window opens for settlement debt negotiation. To obtain more money from the debtor, it may even be possible to get the debt acknowledged to a credit reporting agency as paid as agreed or settled and not the notation of charged off. Knowledge of these rights can be both powerful and profitable for you as the debtor. There are other alternatives that you should learn more about if you are faced with not being able to pay your debts. About the Author: If credit card debt is causing you pain, James (Jim) Montgomery recognized as a Texas Super Lawyer explores the benefits of settlement debt negotiation in "3 Ways To Stop Creditors In Their Tracks", a free report that you need to read. Get a totally unique version of this article from our article submission service Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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