There are different ways to handle a credit card problem. The best way depends on many different factors, such as your income, cash-flow, credit score, assets, and how serious your problems are.
If your debt problem is serious and you can't afford to increase your monthly debt payment or consolidate debt through a cash-out refinance loan or an unsecured personal loan, you have to look for other solutions.
One effective way to resolve a credit card debt problem is to negotiate reduced payoffs with your creditors. If you decide to try this, then you have to figure out how to settle credit card debt the best way.
Debt negotiation is also called debt settlement. It involves you, or a firm that you hire, contacting your creditors and negotiating to pay less than you owe and still bring the debt to a $0 balance. Creditors are not willing to settle everyone's debt, so you have to show your creditors a reason why they should be willing to accept less than the full amount owed. If you don't approach your creditors the right way, you won't succeed in reaching a negotiated settlement.
Not everyone is equipped with the skills to negotiate on their own behalf. It is easy to be intimidated by a creditor. If you don't have experience dealing with creditor collection departments, each conversation can be very stressful and nerve-wracking. Even if a settlement is offered, you don't know whether it is a good deal. You may need the help of a professional debt settlement firm.
The key to settling your debt with professional help is to find a reputable debt settlement firm you can rely on. Since 2010, it has become easier for you to find a quality firm to work with. In late 2010, the Federal Trade Commission (FTC) banned settlement firms from collecting fees from you before they settle your accounts. This change resulted in a huge drop in the number of firms that offer professional debt settlement help.
Not every company that remains is trustworthy. Some still try to collect fees from you in advance. But, if you take the right steps, you can find an experienced, reliable company to work with.