In dire situations there are a few steps can be taken to settle credit card debt. Dire situations means extremely large amounts of credit card debt.
Caution: These steps may cause accounts to be closed, credit score to drop, owe additional income tax, or a higher interest rate!
-Debt Settlement: Offering a lump sum of less than you owe in return of easing the debt. This is NOT Debt Consolidation, which is not as hard on your credit score. Debt Settlement is serious and will hurt a credit score. The negotiation to pay and amount less than what is currently owed.
-Debt Management: Paying a counseling organization monthly, then they help negotiate terms and pay bills on your behalf. Choose wisely here because there are some bad guys in this field too.
-Hardship repayment or forbearance: This one is used when there is a divorce, job loss, or extreme financial hardship. Talk to a professional! (more…)