Credit Card Debt Reduction - Do You Qualify For a Credit Card Debt Settlement?
Never be in a hurry to answer this question.
If you do not qualify for settlement, trying to fit yourself into this deal is only going to lead to complications.
On the other hand, if you hastily determine that you do not qualify for settlement, you will probably end up in bankruptcy when you could have easily avoided it.
You must understand the characteristics and consequences of a settlement deal to determine whether you do qualify for this transaction or not.
For starters, this deal is available only to those who owe a lot of money to their unsecured lenders.
If you do not owe a lot of money, you will not qualify.
However, what is excessive debt may differ from person to person.
A person who owns three billion dollars in a year may find credit card debt worth hundred million dollars is excessive.
On the other hand, a person who owns thirty five thousand dollars in a year may find credit card debt worth $5000 as excessive.
You must understand that the subjective interpretations cannot be used to fit yourself into a settlement deal.
Instead, you should find out what your credit card issuer considers as excessive.
The general consensus is that debts in excess of $10,000, is considered a lot of money.
You should use this figure as the benchmark and try to find out whether you really owe a lot of money or not.
There is no point in going in for settlement when you do not have excessive credit card debt.
Card debt has its own problems and complications.
If you try to settle it, you will end up with a very poor credit score and a very low credibility in the market.
Hence, going in for settlement deal when you do not have sufficient debts is only going to be a loss making venture.
Secondly, you will have to determine whether you are very regular in repayment of debt or not.
There are many persons who try to fit in 6 repayments in a single year and presume that this is sufficient to keep the credit card issuer happy.
That is definitely not the case.
If you cannot make the repayment on a monthly basis without any delays or distractions, you are facing debt problems.
Hence, always stick to this point when you are trying to determine whether you qualify for settlement or not.
If you are not regular, only then should you go in for settlement deal.
If you are regular, then you should make use of other solutions like consolidation and debt management to find the best relief possible.
If you do not qualify for settlement, trying to fit yourself into this deal is only going to lead to complications.
On the other hand, if you hastily determine that you do not qualify for settlement, you will probably end up in bankruptcy when you could have easily avoided it.
You must understand the characteristics and consequences of a settlement deal to determine whether you do qualify for this transaction or not.
For starters, this deal is available only to those who owe a lot of money to their unsecured lenders.
If you do not owe a lot of money, you will not qualify.
However, what is excessive debt may differ from person to person.
A person who owns three billion dollars in a year may find credit card debt worth hundred million dollars is excessive.
On the other hand, a person who owns thirty five thousand dollars in a year may find credit card debt worth $5000 as excessive.
You must understand that the subjective interpretations cannot be used to fit yourself into a settlement deal.
Instead, you should find out what your credit card issuer considers as excessive.
The general consensus is that debts in excess of $10,000, is considered a lot of money.
You should use this figure as the benchmark and try to find out whether you really owe a lot of money or not.
There is no point in going in for settlement when you do not have excessive credit card debt.
Card debt has its own problems and complications.
If you try to settle it, you will end up with a very poor credit score and a very low credibility in the market.
Hence, going in for settlement deal when you do not have sufficient debts is only going to be a loss making venture.
Secondly, you will have to determine whether you are very regular in repayment of debt or not.
There are many persons who try to fit in 6 repayments in a single year and presume that this is sufficient to keep the credit card issuer happy.
That is definitely not the case.
If you cannot make the repayment on a monthly basis without any delays or distractions, you are facing debt problems.
Hence, always stick to this point when you are trying to determine whether you qualify for settlement or not.
If you are not regular, only then should you go in for settlement deal.
If you are regular, then you should make use of other solutions like consolidation and debt management to find the best relief possible.
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