How to Decide whether or not to Apply for Credit Card Settlement

If you are straining under a mountain of debt it can be hard to dig your way out.  At times it can seem hopeless.  More and more people these days are facing these issues.  Easy credit with high rates, unemployment and careless borrowing can all be few of the reasons that debt can quickly spiral out of control.

♦  Your solutions (all bad)

Of course there are solutions.  Bankruptcy.  Simply not paying your bills.  Letting your bills go to collection and trying to deal with it.  Credit card settlement. 

♦  Credit Card Settlement

Of all the “bad” solutions Credit card settlement is the best one.  By far!  It will affect your credit rating negatively, but the effect will be far less than all of the other methods.  It is not the “preferred” method of dealing with debt, but if you cannot pay your debt as is it may be a viable alternative.

♦  How to decide whether or not to apply for credit card settlement.

The first big step in your decision is to see a credit counselor.  A credit counselor can give you a lot of information on lowering your debt and finances the “right” way.  They can help you create a budget and make a workable plan.  They can also tell you if it is simply “impossible” to make you payments and survive the way things are.  They are a great sounding board for your decision and may give you the information needed to NOT have to apply for credit card settlement.

Once you have seen a counselor you will have a better idea on a budget.  Try to make it on the budget.  Work very hard at this.  If you find that you are still short and unable to pay you may once again have to consider credit card settlement.  Once you have exhausted all other options and it comes to be the best of the remaining options it might be time to talk to come of the agencies and actually see what they can do for you.

Remember if you cannot get a deal that will allow you to make ALL payments it is not worth doing at all.  You need to know what you can pay per month and be able to actually do it.  If you negotiate AND miss payments it actually will hurt your credit worse.  So if you are seriously considering it make sure that you are able to meet all the payments.