Credit card debt is keeping you up at night.
Your stomach is turning over and over as you realize you just do not have and will not have the money to pay the minimum payments, much less pay the cards off.
Settlement debt negotiations can eliminate credit card debt.
Most people are not aware that banks and other regulated lenders must charge off a retail loan, like credit cards, when it becomes 180 days past due. Now that does not mean that the credit card loan is not still owed by the debtor but it means that the loan has become almost worthless to the bank.
Banks normally sell the credit card loans to a collection agency. Collection agencies drive a hard bargain and buy the credit cards balances for pennies on the dollar.
Most debtors do not consider just not paying their cards for fear of the calls, letters, etc. from collectors. They also have been told that their credit will be ruined with credit scores permanently impacted.
What the card companies don’t tell you is that they would rather settle with you for a few more pennies on the dollar than sell the credit card loan to a debt collector. You see selling to a debt collector allows the investor who bought the debt to make money, not the card company or bank.
The bank or card company is open to settlement debt negotiation because it makes them more money than their other alternatives.
Most debtors will default on the debt and go bankrupt so none of them, bank or debt collector, make any money. So the window opens for settlement debt negotiation.
To obtain more money from the debtor, it may even be possible to get the debt acknowledged to a credit reporting agency as paid as agreed or settled and not the notation of charged off.
Knowledge of these rights can be both powerful and profitable for you as the debtor. There are other alternatives that you should learn more about if you are faced with not being able to pay your debts.
