22nd September 2017
Home » Bisnis Online » The Option to Settle Credit Card Debt – The Only Hope for some People
June 14th, 2017 Cat: Bisnis Online

Let us begin with a little story, to understand what it is that negotiators that settle credit card debt, do. There’s a little family-owned restaurant in Orlando, close to the Universal Studios theme park lot. They have been well-liked around town ever since 1990, and run a roaring business. But they figured that they could use the goodwill they earned in and around town, and extend their good fortune by opening a few more restaurants near the other theme parks in Orlando. They thought they could not go wrong; they scraped all they could, and opened in their new locations. But with the economic slowdown, and with their struggle to maintain their famous quality in so many places at the same time, business slowed down. It got to the point where they had to take out new 0% credit cards just to keep their business from going under. When they came to owing $75,000 all over, one day, they defaulted on a credit card bill, and that was when it all started. Their rates soared because of the default, and they sent their debt collection agents in India and China on them pestering and demanding money impossible amounts. The family wanted desperately to avoid bankruptcy filings , and tried to negotiate with the credit card companies themselves, to see if they were willing to settle credit card debt owed to them. But no cigar.

That’s when they turned to a business that really finds regular custom in today’s difficult financial climate: the debt settlement negotiator. This isn’t the same thing as a consolidator or a credit counselor. The consolidator merely helps you collect all the little loans you have in one place; and the credit counselor helps you negotiate a lower interest rate with your credit card company so that you might actually pay everything back as promised. But you go to someone to help settle credit card debt when you’re at your wits’ end, and simply cannot pay what you owe, now or ever. You go to them when you need someone to talk to the credit card companies and convince them to accept a loss, to accept a one-time part payment and let you off the hook.

A negotiator who helps you settle credit card debt does not come cheap; they actually charge you about 15% of what it whenever it is they help save for you. Debt settlement negotiators are not really regulated by the government for the most part. The FTC gives you some advice on how to choose the good competent negotiator. You must make sure that they are certified by the Better Business Bureau and according to the Association of Settlement Companies, the good ones have the grace to not accept your case if you just want to get out of your responsibilities because you couldn’t be bothered, don’t glibly guarantee results, and so on.

So what kind of results can you expect from a negotiator who helps you settle credit card debt? Well, the hapless Orlando restaurant people had their negotiator charge them more than $10,000 for their services, and negotiate each $20,000 balance they had with their different credit cards, down to $9000 apiece. This was something they could live with, and they were happy to finally be done with it. They were surprised that they still owed the IRS taxes on what they had been forgiven, but they just sucked it up. Dealing with debt can be a nightmare; but a competent capable professional to help you, can at least help you know what you’re dealing with.

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