Top 10 Reasons For Credit Card Debt Settlement
On March 21, 2011, Citibank filed a lawsuit against a Beaumont man, claiming that he failed to repay his credit card debt, which was in excess of $15,000. In addition to the debt repayment, Citibank is also seeking attorney's fees, post-judgment interest and other costs. If your debt situation is as worrisome, credit card debt settlement is a viable option for you. Hundreds of individuals and small businesses consider filing for bankruptcy every year because of their mounting debt situation. This is, however, not a wise decision, especially when there are alternatives like credit card debt settlement.
Why Credit Card Debt Settlement?
Many people in a precarious financial situation have opted for credit card debt settlement. The top reasons are:
Use the Money to Benefit You Instead of the Credit Card Company: Most credit card companies charge exorbitant interest. Instead of spending money paying interest (which does not make even a slight dent to the principle amount that you borrowed), you can invest this money and make it grow. You can build wealth and secure your post-retirement future, rather than filling the coffers of your creditor.
Many Companies Follow Double Cycle Billing: This is one of the most lucrative procedures for creditors. These companies use charges for two months to determine your balance. This happens even if you did not carry a balance in the prior month. This is not only confusing, it is also very costly.
Allocation of Your Payment: When you make a payment, the creditor will allocate those funds to clearing the debts that have the lowest interest rates first. Credit card debt settlement will also take care of this issue.
Fees: Apart from interest levied on the debt, credit card companies also charge you a variety of fees, including processing fee and late fee (for delayed payment). This keeps adding to your outstanding payment and interest becomes payable on this as well.
Increase in Interest Rate on Non-Payment: If you default on a payment or make a payment late, the interest rate charged by the creditor may keep climbing. This may be mentioned in fine print and your creditor may not inform you when the rate is actually increased.
Most people are not even aware that the interest rates are being raised or some fee is being charged. Creditors take advantage of this situation and keep increasing your outstanding debt. Therefore, it is critical to consider credit card debt settlement.
Why Credit Card Debt Settlement?
Many people in a precarious financial situation have opted for credit card debt settlement. The top reasons are:
Use the Money to Benefit You Instead of the Credit Card Company: Most credit card companies charge exorbitant interest. Instead of spending money paying interest (which does not make even a slight dent to the principle amount that you borrowed), you can invest this money and make it grow. You can build wealth and secure your post-retirement future, rather than filling the coffers of your creditor.
Many Companies Follow Double Cycle Billing: This is one of the most lucrative procedures for creditors. These companies use charges for two months to determine your balance. This happens even if you did not carry a balance in the prior month. This is not only confusing, it is also very costly.
Allocation of Your Payment: When you make a payment, the creditor will allocate those funds to clearing the debts that have the lowest interest rates first. Credit card debt settlement will also take care of this issue.
Fees: Apart from interest levied on the debt, credit card companies also charge you a variety of fees, including processing fee and late fee (for delayed payment). This keeps adding to your outstanding payment and interest becomes payable on this as well.
Increase in Interest Rate on Non-Payment: If you default on a payment or make a payment late, the interest rate charged by the creditor may keep climbing. This may be mentioned in fine print and your creditor may not inform you when the rate is actually increased.
Most people are not even aware that the interest rates are being raised or some fee is being charged. Creditors take advantage of this situation and keep increasing your outstanding debt. Therefore, it is critical to consider credit card debt settlement.
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