A debt settlement offer may sound like a good plan because you can reduce the principal on your account.
Bankruptcy and debt management programs are usually better alternatives, though.
if you choose to make an offer then make sure you understand your budget and how much you can pay before you negotiate with your creditor.
Pay off collections or wait? don’t ignore debt. Settle or dispute the charges as soon as you are able.
Agencies can legally collect when your creditor sells them the contract. It is all right to negotiate with them to settle the account.
When you can, deal with your original lender. They care about reputation and continued business, not just how much money they can get.
If they sold the account, then you have to negotiate with the collector. If they haven’t written it off, then talk to your original creditor.
Nonprofit debt consolidation companies help your with unsecured debts, like credit cards. Their services include counseling and debt management plans.
They approach debt management differently than for-profit organizations.
Watch out for scams with either type. Nonprofits should not ask for upfront fees or give you a sales pitch from the beginning.
Credit card refinancing vs. consolidation depends on how much debt you have, how good your credit is, and how how much income you have.
Both only address symptoms of your problem, though. Interest rates and loan terms aren’t the real issue, debt is.
If you consolidate credit card debt on your own you may lower your credit scores for a short time, but its worth it to pay off your balances.
You should pay off your revolving debts or consolidate them.