subject: Stop Paying Credit Card Debt - Why Debt Settlement Companies Tell You To Stop Paying Bills [print this page] People are so engaged in their daily routine that they sometimes fail to notice the outstanding credit card debt that continues to grow and grow until customers find it too hard, sometimes impossible to cover.
The ones who take advantage of these situations are the banks (creditors). It is not in their best interest to tell you to stop spending, but on the contrary, they keep on emphasizing how easy it is to use the plastic money, just by a sweep of a card. It is more than fine with them that you keep struggle to pay off your monthly credit card bills and they will not take a moment to negotiate with you unless you quickly come on the verge of filling bankruptcy.
However, the ones who will help you in your attempt of negotiating your debt with the credit card companies are the settlement firms. They do not do this out of the kindness of their hearts, but for a certain fee that regularly means a percentage of the amount of money they help you to save. And they usually have success in their negotiations with the credit card companies, helping you to settle your debt for even 40% of what you initially had to pay.
Why do banks accept that? Because, first of all, they are for-profit companies just as the settlement firms are. They'd rather have you pay a fraction of what you really own than not pay them at all, but fill bankruptcy instead. They realize that the best option is to discuss and negotiate with you, directly or indirectly and, depending on their negotiating skills and your financial situation (monthly income) they can recover as much money as possible.
The credit card companies' situation is not as bad as it seems. Through various governmental programs they are receiving substantial stimulus money so they can cover their losses.
If you're debt is very high, over $10,000 the smartest thing you can do is to resort to a debt relief network that will find the most proper settlement company for you, for no charge at all.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified. They are free to use and offer helpful debt relief advice.
