Credit card debt isn’t unusual. Approximately 61% of Americans have a credit card and carry a $6,194 credit card balance annually. You can save money by having a credit card that offers rewards, but you will lose those savings if you carry a balance and pay a high-interest rate.
How to get credit card debt relief is a stressing point for most citizens. Following strict rules and using a debt relief firm like Freedom Debt Relief will help you settle your bills, pay less, and save money. What’s the least expensive way to eliminate credit card debt? This article tackles all the different ways to fix your credit cost-effectively.
What Is Debt Settlement?
It’s when you settle a debt for less than you owe, with the promise that you will pay the settlement amount in full. A third-party company usually handles debt settlement though you could do it yourself. It’s sometimes called debt relief or debt adjustment.
How Do You Find a Good Debt Settlement Company?
How to get credit card debt relief is a seamless process if you know what company to hire. According to the Consumer Financial Protection Bureau, penalties and fees could cancel out any savings you may achieve through debt settlement if the company does not settle all or most of your debt.
However, a debt settlement company like Freedom Debt Relief is motivated to work with you to find a reasonable solution.
How To Negotiate Credit Card Debt
You may have difficulty negotiating with a credit card company since they are unlikely to change their terms unless you risk bankruptcy. Prepare yourself for credit card debt negotiation, whether you handle it yourself or hire a professional like those from credit union.
Here are the steps you need to take:
- Obtain your current account balance by checking your online account balance or calling your credit card issuer before the negotiation begins. Check your account’s interest rate as well.
- Ask a credit debt company to help. The debt settlement, loss mitigation, or hardship department will not have the authority to approve your request if you decide to handle negotiations. Once you are in contact with a negotiating agent, you should make a polite but firm offer.
- If you think of filing bankruptcy or hiring a debt relief professional, let the card issuer know and tell them you prefer to negotiate directly. There might be a huge chance your credit card will get frozen at this point.
- Take detailed notes and follow up as needed. If you like, you can record the call, although some states require you to inform the card issuer that you are recording the call and vice versa. When you are unhappy with the terms offered, don’t hesitate to ask for a supervisor or call back multiple times.
- You must request documentation from your credit card provider to settle or arrange a dispute. Until you have documentation, you don’t have a deal.
How Much Does a Debt Relief Program Cost?
There are still costs associated with credit card debt relief, whether you negotiate it yourself or through a debt relief company. Late payments will negatively impact your credit score. Furthermore, settlements will remain on your credit history for seven years after completion. A forgiven amount may also be taxable if it is not insolvent.
What’s The Least Expensive Way To Eliminate Credit Card Debt?
Following the advice above is how to get credit card debt relief. You may be able to reduce your debt through debt settlement programs, preventing you from committing financial disaster, including bankruptcy. In addition to lower interest rates and smaller minimum payments, your credit card issuer may offer a fixed payment schedule or lowered fees.