If You Hire a Debt Settlement Firm Be Ready for Credit Card Debt Collector Phone Calls.

Debt settlement firms want you to have at least $10,000 in credit card debt. They want $1500-2000 of that $10,000 in fees paid first before they begin working on settling your debt. They tell you to stop paying your credit card & to send those payments to them for their fees & to save for a lump-sum settlement.

So then what happens if they cannot settle your credit card debt? What happens to what you have paid them? What happens to the credit card account that is not being paid & to your credit rating? If they tell you they can get a 50 percent settlement on $10,000 how long will it take you to save $5000 plus $2000 for their fees?

$500 a month will total $7000 after 14 months of payments to the debt settlement firm. At that pace it will be over one year before $5000 can be paid after $2000 in fees is taken in a lump sum to end the debt. But that debt may no longer exist because the banks charge off unpaid credit card debts after six months. Then within the year they sell those bad debts for about 10 cents on the dollar.

If that happens to you that means some junk debt buyer has bought your debt for 10 cents on the dollar before it has been negotiated. At that point there is no reason for the bank to remove the charged-off debt’s bad mark from your credit report which means it will be there for seven years.

According to the Credit Card Debt Survival Guide you will need to be ready for the junk debt buyer?s attempts to collect the debt. If you are not ready if you are counting on the debt settlement firm & unaware of the debt?s charge-off & sale you could be ambushed by a debt collector or collection attorney.

So your debt is not settled. Your settlement fee is spent. You have debt collection problems. And your credit rating is below par. Just maybe you still have $5000 but that is only if the settlement firm escrowed it with a third-party.

If you are seeking credit card debt relief whether you can afford to pay or not read Matt Highlander’scontributions in Credit Card Debt Survival Guide.

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