What Happens When You Settle With A Credit Card Company?

I have been receiving calls from my creditors and most of them are offering me with a settlement. for the most part I am interested in it because I know it will be of great help . but what exactly happens when you settle with a credit card company? How will that reflect on my credit?

What happens when you settle with a credit card company?

Evidently, you will be given the opportunity to pay for less than what you actually owe. Depending on the credit card company, you may either be asked to pay for the entire lump sum in one sitting, or pay it in increments for a set time period. Once the settlement amount has been completed, it will be reported as "settled" on your credit report.

If you're asking "what happens if you settle with a credit card company?"--

In terms of utilizing the DIY approach, well, you may not receive a very affordable settlement amount. That in itself is understandable, given that banks and credit card companies would want to receive their money back.

Right Karess but you gotta remember--more and more creditors are more forgiving this time around. They're giving consumers a chance to get their act together and get everything paid. So what happens when you settle with a credit card company, given the current economic situation? You're given more chances to pay for an amount that you can actually afford.

what happens when you settle with a credit card company...

i worked with one creditor before, my debt was 159 days behnind on payment they said, and i was able to get a 50% settlement from them. so from approx $5000 i paid only $2500. the thing is i had to pay the $2500 within 90 days, so that was a little hard fpr me, and they asked me to postdate checks. i discovered this wasn't a very good idea, because they had a check by phone fee, but i demanded that it would be waived so i would continue paying. and they waived it. i have that debt paid off now, it was hard at first because the only money in my checkbook was a debt payment, but i am glad i did it

Thanks for sharing that experience, Millie! I just have a question, though: What made you decide not to hire the services of a debt settlement company? What made you decide to settle and not do something else to get that debt taken care of?