[SIZE="4"][COLOR="purple"]Do credit card debt settlements need to be made all at once to achieve debt elimination? [/COLOR][/SIZE]
With most settlements you do need pay off the each individual credit card debt all at once in a lump sum by paying the creditor the reduced debt settlement figure they have agreed to with your debt negotiation firm. There are two significant exceptions that debtors should be aware of. First is that in some cases the creditors will arrange a short payment plan, especially with larger amounts of credit card debt.
These plans might range any where from three to six months to pay off the credit card debt. The other exception comes in the form of special debt management or debt reduction companies, which arrange to stretch debt settlement plans out of a period of one to four years. These debt relief companies will be discussed later in this article.
[SIZE="4"][COLOR="Purple"]What would determine differences in the debt reduction amounts? [/COLOR][/SIZE]
While a person?s own financial situation would have an important effect on debt reduction figures the next most important factor would be the internal debt settlement policy of the creditor. Prediction about the internal policies of these creditors cannot be made on their size or the amount of the debt necessarily, but they are consistent in their own policies.
For example MBNA, American Express and Citicorp may all be major players in the industry and all of a large size but their policy on debt settlements are quite different. On the other hand the way American Express treats each of their own customers individually is fairly consistent in terms of their own internal debt settlement policies. Therefore someone who works with these creditors everyday would know what to expect from each individual company when putting together a debt management plan.
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