Credit Card Debt Settlement

Imagine waking up to a day that the calls received are those from the people we care about, imagine the day looking at the bank statement reflecting a positive cash flow, imagine being completely free from credit card debt.  For some it may sound like a dream in a land far far away however it might actually be closer to a reality then we might actually think.  Part of this process is to be educated on what habits need to be modified, installed or deleted all together so that you don’t have to go through this again, Einstein was known to have said that a problem can not be resolved with the same midset that created it.  At a deep psychological level we must understand to live with in our means or find the way to grow our current logical thinking that will create actions that in turn will reflect our current financial situations.

It is true that for some the current circumstances might have been unplanned, like a medical expense, problems with our health, or a loved one, but statistically for most people it is all due to improper money management.

Credit Card Debt Settlement 

Is it perhaps the desire to find fulfillment in things outside ourselves that might motivate us to obtain a purchase we have no need for, rather to fulfill that within us that is projecting onto us in the outside perspective of the relative world.  We think that if we buy this it will bring us an inner false sense of peace.  We only live once, seems to be the perfect phrase for every situation that requires us to take out our credit cards to swipe, time and time again.  That along with a capitalist society that from a young age we put our children to sit infront of the TV to watch Barrnie, and Dora the explorer without giving thought to all the commercials that happen in between. Have you asked your self what will a 1 year old understand about commercials at that age. My guess is that the pre-programming has begun to be another worker of society to contribute to the ever growing debt that surrounds us in a day to day.  No other country is the credit card debt held by average citizen ever so high as in the US. 

Debt Settlement Company

If you are a point where you might see yourself filing for bankruptcy and as an alternative you are looking into options about credit card debt settlement there are some important components that shall be taken under strict consideration.  If the proper diligence is not taken seriously it can make your current situation even worst.

Lets explore how a debt settlement company works, and perhaps you could do it your self.  The advantage of using those agencies is because in most cases they have an on going existing relationship with the credit and collection ageny which have already established the rapport and prior business knowledge.  The process works by first collecting the money that is to be used to pay off the creditor at the time of negotiation, this is were it can be dangerous.  They company establishes an escrow account where they will be putting the money you are paying them until there is enough to make an offer to the collection agency.  The problem with this model is because the account has been defaulted for so long, it continues to accumulate negative points against your record.  Most people who are close to filing for bankruptcy are likely to be accepted the terms offer.  In most situations the creditor will rather get part of their money then nothing at all. It is not uncommon for the collection agency to file a criminal claim against you in order to get their money back. In these cases the debt settlement company can not represent you due to the fact that it will have to be disputed between you and the collection agency.  If you have collateral most likely you will be forced to sell it in order to pay off your creditors.  The government will also takes you on the amount of money you saved as a result of your settlement.  For example if you have a debt of $10,000 dollars and you settle with the collection agency for $6,000 dollars you are now responsible for paying taxes on $4,000 dollars, they consider this a gift above 500 and is there for taxable income.

For the right situation debt settlement can be a good resource, for others it can ruin their credit even more so.  

Do your research for each company, ask for referrals, looking into the BBB reviews and utilize social media websites to identify previous customers and ask them directly about their experience and if they would recommend them.