Credit Card Settlement Companies Help Consumers With Bad Credit Get The Benefits Of Debt Consolidation Without A Loan

May 17, 2012 (PRLEAP.COM) Business News aims to help the millions of American consumers that find themselves overwhelmed by credit card bills each year as they struggle to meet their minimum monthly payments and fend off calls from card issuers and debt collectors. Cardholders who routinely exceed their credit limits and find themselves denied credit for routine purchases must enlist the help of a credit card settlement specialist to stave off possible bankruptcy or insolvency.

Credit card customers who recognize the need for a drastic solution to get their finances under control often turn to credit card consolidation loans. These products, offered both by niche issuers and mainstream banks that provide thousands of other financial services, replace multiple credit card payments with a single loan repayment at a slightly lower rate of interest.

Debt consolidation loans ( have a number of drawbacks. Because consolidation agencies stretch out repayment schedules to make their loans seem more attractive to cash-strapped consumers, they can take up to seven years or more to repay. They also create a new class of debt for which credit card customers are responsible. Consumers who fall behind on their payment schedule can be subject to penalty interest and further damage their credit score, compounding their financial problems.

Credit card settlement programs offer a clearer, less expensive alternative to loans. Like credit consolidation loans, credit card settlement negotiations eliminate multiple monthly credit card payments in exchange for a single bundled payment to a new provider. Unlike consolidation loans, credit card settlements significantly reduce the principal amount that cardholders owe, making it far easier for the typical consumer to escape debt ( Every case is different, but settlement participants typically begin and end the program in between 24 and 48 months, emerging debt-free at its conclusion.

Credit card settlement offers other advantages over traditional consolidation loans or bankruptcy. Credit relief agencies recommended by usually do not charge clients up-front for their services, collecting payment as a percentage of the total settlement only after the client has seen results. Settlement programs also have a proven track record of saving consumers thousands of dollars, with credit card companies settling for a fraction of the original debt. Program clients always know where they stand, never laying out more than their program's fixed monthly payment.

Consumers interested in a credit card settlement program can fill out a short online form or call during extended business hours to speak with a trained credit relief specialist.