Birmingham Credit Card Debt Settlement
Credit card debt settlement is a negotiation process with a person’s creditor to hopefully settle with a debt payment deal that benefits both parties. This happens mainly because the credit card account owner went under circumstances that made him unable to pay the full amount of debt in time or at all.
Settling with a creditor is a difficult process to face. Not everyone has all the necessary knowledge, let alone emotional capacity, to go to a crediting institution and negotiate their way out of their crippling debt. In finding the best credit card settlements with your creditor, Optimal Debt Solutions can provide you with all the resources and knowledge one needs to get the best possible debt settlement solution for your credit card accounts.
Call Optimal Debt Solutions at (313) 488-3144 to get a free consultation.
Understanding Credit Card Debt Settlement
Why do banks and other credit card issuers even accommodate negotiations? One important thing to know about crediting institutions is that they are made mainly for profit. The services and help they give to people are normally secondary only to their profit-making essence as a business. So once they have a client that has lost their capability to pay their credit card balances, they would rather settle for less than the original deals than get nothing. Otherwise, these businesses would face bankruptcy.
Settling with a credit card issuer can be handled by yourself. These negotiations usually begin with a phone call with the creditor. Either you can offer your settlement proposal, or you will be presented with various settlement options. Take note that while debt negotiations can be done on your own, if you don’t have the necessary knowledge and experience in handling credit card debt, it is best to consult with experts. Nonetheless, here are the most common credit card debt settlements:
A lump-sum payment is a one-time, big-time payment, usually in cash, offered to the creditor. The amount you pay is, of course, lower than the entire balance left on your credit card account, including the fees and interests, hoping that the rest will be “forgiven” by the creditor. This is usually chosen by people who have acquired a large amount of money at a time, such as an inheritance, a work bonus, an insurance payment, or perhaps an option to take from a personal savings fund.
A workout agreement is a deal involving modifications of your original credit plan. The most common examples are the lowering of your interest rates, removing or decreasing the minimum amount of your monthly payments (if any), or removing previous fees. This option closes in the gap between the principal debt and the overall incurred debt.
Forbearance Program/Hardship Payment Agreement
This settlement is similar to a workout agreement, but it largely depends on a person’s current situation. In a settlement negotiation, you will have the chance to share (as your creditor will likely check on) the personal reasons why you won’t be able to properly pay off your credit card balance. So if your reasons are dependent on universally considered difficult life situations, such as a recent calamity, an unwanted job termination, or an illness, creditors are more likely to give you a forbearance program–a settlement program based on the acknowledgment of the debtor’s difficult situation. Forbearance programs may include lowering interest rates, waiving of late fees, lowering or removing minimum payments, or pausing of payments without penalty for a certain period.
Trust Us For Your Debt Settlement Plan
With over a decade of experience in negotiating and settling debt with creditors, our Birmingham, MI credit management company guarantees the professional and quality handling of your credit card debts. We know how intimidating it is to go to a credit card issuer just to ask for consideration for your debt. Optimal Debt Solutions is knowledgeable, sharp, and passionate, and we want to be your partner in debt freedom.
Free Credit Card Debt Settlement Consultation
Maybe you don’t know how to start negotiating. Or perhaps you’re too scared to make decisions and what settlement to choose. Our Birmingham credit management company knows what you’re going through, and we want to be there for you while you settle for a better way to pay your debts. Our partnership starts with your call!
Call Optimal Debt Solutions today at (313) 488-3144 for your free consultation with a credit card debt consultation expert!