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February 11,2008

  • Enlisting Reputable CC Help, Pt.1
      -- What to expect.

    When someone finally decides to commit to resolving credit card debt woes, the first item on the agenda will involve a ‘Debt Management Plan'. Many people who seek sincere help are already so buried in credit card debt that they can no longer cover minimum payments from what remains of their paycheck. In these cases the correct method for this resolution is a plan especially tailored to their situation. This usually involves empowering the credit card councilor to help manage your finances by setting up regular deposits to a debt-recovery account.

    By committing to this responsible act, the councilor will have more clout in dealing with your credit card lender in getting you breaks. These could be in the form of lower interest charges and waivers from some of the penalty fees that have already been added to your debt. Credit card lenders would rather work with responsible debtors then drive them into hopeless despair. It's better for them that they get some recovery than none at all. In addition, these councilors will also help coordinate with the other obligations that bury you by applying appropriate amounts of you debt-recovery deposits to keep them off your back, also. These would be creditors concerning medical bills, car payments and things like that.

    These credit card councilors will negotiate with all your creditors to implement a do-able payment schedule for each of them, based on what you can reasonably perform. As to the disbursement of your deposits, the councilors will coordinate all the payments in a way that each creditor will accept.

    There is another brand of credit card debt ‘helpers' not heavily promoted in the mainstream. Called 'settlement/negotiation agents', some companies promise to get you out of debt free and quickly. These companies are not regulated and some employ reckless tactics on your behalf. They will recommend you simply stop paying your creditors altogether. They do, however, advise you to put moneys aside for the day things get to an extreme. At that point, they will call your creditor and attempt to negotiate a greatly-reduced lump-sum pay-off for the whole debt.

    Sometimes this works but, remember. Those people don't carry your liability when your credit card rating is destroyed and your creditor wins an injunction to garnish your wages, freeze your assets and liquidate the belongings in your home. It is legal and does happen.

    Continued...
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