This article has been contributed by Diana Degarmo. She is associated with Oak View Law Group as a contributory financial writer. She likes to keep updating herself regarding recent developments in finance sector. She has written many articles on debt management, debt consolidation, bankruptcy etc.
Are you a debtor who is over-burdened with credit card debts? Do you think to settle down your credit card debts so that you may be able to become debt free? If yes, then it is important that you make yourself aware of the essential facts that you need to remember when you go to settle credit card debt. Knowing these facts will give you an added advantage to negotiate in the best way possible and get out of debt problems with ease. Read on to know about 5 such facts that you need to keep in mind when you go to settle credit card debt.
Keep the creditors on your side – When you have huge debts to pay off, you will think your creditors to be your enemy since they will call you in the odd hours to get their payments. If you are seriously interested to repay your outstanding debts, you may discuss with your creditors about the financial problem that you’re facing due to which you cannot afford to pay off your outstanding dues. At times, the creditors help you sort out your case so that you can get rid of your debt problems. By avoiding phone calls and ignoring the bills will not help you solve your problems. Try to keep your creditors on your side so that you can negotiate with them easily.
Right to negotiate with your creditors – According to the legal systems, the borrowers get protection for settlement and bankruptcy. These provisions have been made to protect you from facing financial disasters. You do not need to go to court for the negotiation process. You may sit down and have a talk with your creditors in order to get the best answer before your debt goes into the hands of the collection agencies.
Look for loans with bad credit –With excessive debts to pay off, you will find it difficult to get new credit. A bad credit personal loan can be said as an alternative to help you rebuild your financial stability and secure your future. These loans can be taken out if you have come across any financial emergency like expensive illness and also to pay off your outstanding debts. Although bad credit personal loans are expensive, they provide you with various benefits. Find out the risks and rewards involved with it in order to know if this is the right decision for your case.
Get notified of increase in interest rate – According to the Credit Card Reform Act which came into effect from February, 2010, the customers needs to get notified of increase in interest rate and this notification period has been increased to 45 days. Additionally, the bill demands that the interest rate cannot increase on the already existing credit card debts. In case your rights get violated, your outstanding debts may be eliminated.
Provide you for payment deferral – There are situations in an individual’s life when you may lose your job or is facing financial hardships. At this point, you should make it a point to inform it to your creditors so that they may provide you for payment deferral. Usually the credit card companies will agree to consent these requests because this way they’ll be able to make more money through your outstanding debts in the long run. However, you need to know that your requests will be granted only for once. You may request your lender to lower down your payment so as to make it affordable.
Thus, by keeping the above facts in your mind, you will surely be able to settle your credit card debt problems and live a debt free life.