Consolidating credit card debt 20
You have to stop making payments because companies only settle delinquent debt.
After a certain amount of time has passed – usually six months, but it depends on how much you owe and who you owe it to – the settlement company will begin negotiating with your creditors on your behalf.
If you value customer service most, Freedom Debt Relief is a good choice as its customer service is highly regarded in the industry.
Customers get quick responses to calls and emails, and company representatives undergo three months of training before taking calls.
If you don’t meet the minimum debt amount, you’ll be referred to a credit counseling agency.
National Debt Relief provides all the forms necessary to notify your creditors you’ve entered a hardship program and gives you access to a client dashboard where you can get updates on how your settlement is proceeding.
Some states put caps on that percentage, but in general we saw a range of 15 to 20 percent.
One thing to note is that this is on top of what you pay your creditors.
It can still be worthwhile, but make sure to include the fees in your savings projections.
Another thing to keep in mind is that your debts are going to continue to accrue interest.