Profit settlements through credit card debt programs

As the number of Americans taking a new interest in settlement negotiations and other credit card debt programs steadily increases, along with the looming burden of unsecured debt shared by most of our men and women, the average consumer remains alarmingly unaware of virtually all of the precise details regarding the credit card debt negotiation process. Sure, people have heard a bit about debt settlement negotiations at the water cooler or at a family dinner or while tuning in to a TV news show, but most debtors who take advantage of a free introductory session with a settlement counselor know nothing more about the approach, other than its relative newness among credit card debt programs , the incredible triumphs over the looming creditors, and its distinction as wholly separate from the increasingly fiercely avoided Chapter 7 bankruptcy alternative.

Aside from the mortgage-equity lending industry — which has severely backed away from consolidation loans and now more than ever restricts most financing options to homeowners with low debt-to-income ratios and credit bureaus in excess of seven hundred — debt management firms’ are particularly famous for theirs strict eligibility standards when it comes to defining their customer base. The credit card debt programs that gained most notoriety in the post-bankruptcy era of the ’00s were almost certainly credit card advisory firms, and they seemed known less for their services than for their non-stop marketing aimed at the less-than-ambitious segment of the United States. Settlement negotiations, in direct contrast, require a certain type of individual or couple for these companies’ burgeoning new vision of debt relief to take effect.

In a way, the run-off brand of credit card debt programs splits the difference between what the current public perception might consider to be the “ideal” customers of mortgage lenders and consumer credit agencies, respectively. That exaggerates things more than a little. Qualifying for an equity loan isn’t quite as hard as we might think (or even wish), and consumer credit advisory firms bring in their share of college graduates who don’t need guidance to design a structured compensation approach or an effective household budget, but who respond to the advisors’ encouragement and credit their positivity with coaching them away from self-destructive shopping compulsions. Finally, different debt relief programs meet the needs of different debtors

The CCC credit card program’s low cost and no-hassle tutoring seminars, which illustrate simplified truisms in the area of ​​home finance, can generally attract borrowers unconcerned about further abuse of credit scores approaching below four hundred. Nor do many of their consumers tremble at the threat of lawsuits being instituted by the banks, since garnishment or forfeiture would not be effective against the unemployed and the cash-strapped. However, the most sought-after candidates for negotiated solutions must not have an excessively high annual gross salary, otherwise the negotiators will not even agree to a consultation.

Of course, if you were making that kind of money, the lenders would ask why you couldn’t just pay the balances back as they stand. On the other hand, if you were genuinely unemployed or only working part-time and barely had enough income to afford your family’s necessities, the people running the credit card debt programs might wonder if it’s worth any Some sort of settlement to be sought as there does not appear to be any additional repayment funds available. It’s a tricky compromise they’re asking for, but the rewards for qualifying could be immense.