Consumer Advocates And Credit Card Debt Settlement

There is a growing trend in the appearance of professional consumer advocates who offer everything from loan re-negotiation to credit card debt settlement assistance. A consumer advocate is an excellent choice for assistance and guidance if credit card debt is out of control and either bankruptcy or legal actions are the next steps in an ongoing credit card debt situation.

Many consumers who are receiving constant collections calls and daily letters warning of law suits or liens on their property will use the services of a credit card debt settlement professional to reduce their overall balances and create a system of repayment that their budget can handle. Such a process is usually called a debt consolidation loan or program, and can include a second mortgage on a home, or an unsecured personal loan taken on by a consumer.

While credit card debt settlement doesn’t completely protect a consumer’s credit rating, it does prevent their credit from being destroyed by multiple collections, or “charge off” notices, or even the ultimate credit destroyer – bankruptcy. This is a very significant fact, because a credit report can either help or prevent a consumer from borrowing in the future, which can mean the difference between getting, or not getting, a new car, home loan or educational loan for children.

A consumer advocate or credit card debt settlement expert will sit down with a consumer or client and in a non-judgmental manner figure out what needs to be done to eliminate the calls, letters and threats from lenders or collections companies. Usually they will directly contact each credit or lending agency and discuss the amount of the balance that will satisfy the account. Often during credit card debt settlement the lender will want a percentage of the account in order to close it without further action against the borrower.

After a consumer advocate has negotiated settlement amounts for all outstanding debts, they will work with a bank or lending agency that specializes in credit card debt settlement to create a loan program that the consumer will be able to handle. Because the consumer advocate knows the entire financial status of his or her client, they will be able to negotiate the best consolidation loan terms possible for their client’s particular budget.

Credit card debt settlement is a commonly occurring event, and most credit card and consumer loan companies have departments and specialists who handle such arrangements every day. This is why it is a good idea to seek a credit card debt settlement professional, such as a consumer advocate, to negotiate the terms, rather than the actual credit card customer trying to negotiate terms. A professional will have the experience and knowledge to reach a settlement that the consumer can handle, and allow them to salvage their credit report and rating.

Credit card debt settlement can do a great deal more than eliminate outstanding credit balances, it can allow an individual or family to lead a better lifestyle, reduce or eliminate the stress of a tight budget, and end the worry and upset from collections calls, letters and threats to a consumer’s credit, home and financial future.