The Credit Card Debt Settlement Mistake

Credit cards are getting more and more expensive by the day. If you own a credit card with a balance nowadays, you would want it to be paid off as soon as possible. Why? Because interest rates are getting higher and higher almost every week, credit companies are introducing new fees and your credit score will never survive the year of things continue as they are.

owever, the need to get credit card debt out of the way as quickly and as painlessly as possible can sometimes lead to bigger mistakes which end up costing the credit card holder even more. Such is the case some times when a credit card holder goes for a debt settlement company.

Its hard not to practically fall head over heals over credit card debt settlement when you consider what they advertise to their prospective clients. Advertisements enticing credit card holders to avail of credit card debt settlement programs often promise quick loan payments, paying off your loans at only a percentage of the original amount and doing all of this without getting your credit score going lower. It all seems to be too good to be true and, unfortunately, it actually is.

Many credit card holders have become victims to the attractive and ultimately empty promises of credit card debt settlement companies. They usually go in expecting to get their credit card problems solved and find out only later on that they are actually spending even more in payments instead.

Not all credit card debt settlement companies are of similar character, however. Some companies actually can do wonders for a credit card debt but not nearly as well as some advertisements for debt settlement would have you believe.

There are tell tale signs that you can check if you suspect a bogus debt settlement outfit. One sign is when the company insists on an upfront fee of several thousands of dollars. A high upfront fee often removes the incentive of the company to work at solving your debt problem. Debt settlement companies that assure consumers that their credit score won’t get hit are definitely questionable. Your credit card score will get a hit when you settle your debts using the services of a debt settlement company. The black marks won’t go away for several years too.

If you are really intrigued by the services that a credit card debt settlement company has to offer, a better way to go at it is to do the work yourself. Instead of having some company handle it for you, you can call up your credit company and ask for a better arrangement for your debt payments.