Credit Card Debt Settlement Agencies Exposed

Are you considering taking up the services of credit card debt settlement agencies? Read this article to find out the truth about them before taking up their offer.You will discover seven important facts that will get you to thinking right

Fact One:

Credit card debt settlement agencies are increasing in number and with the increase in services, there is still a sharp increase in credit card debts.Why is this so? Are these services really solving the debt settlement problem after all?

Fact Two:

They are generally known by promising to cut your credit card payments by half if you can order their services or they even promise to settle your debt for only a small portion of what you owe - without you ever filing bankruptcy. Is this really so?

Fact Three:

They lure their unsuspecting customers to stop paying their monthly minimum credit card payments to the credit card companies.Instead, they encourage them to pay that money to them so that they can leave it to accumulate in their account. When this happens, they promise to now use the accumulated amounts to settle the debts.

Fact Four:

The credit card settlement agencies almost do not tell their victims that 25% - 50% of the accumulated amounts will be sliced off as fees for their services.This is actually how they make their money.

Fact Five:

Most credit card debt settlement agencies normally make there customers to agree to the fact that any accumulated money with them is non refundable. What this means is that even when you decide not to continue with them later, you cannot get your money back.

Fact Six:

If and when the debt settlement agencies finally makes the necessary payment,an income tax usually must be paid on the amount of the debt forgiven. For instance, if you owe $100,000; and they accumulate $50,000 on your behalf, you must pay income tax on the $50,000 accumulated for you. Have you seen the catch?

Fact Seven:

You can definitely do anything the so called credit card debt settlement agencies are doing. You can settle your debts yourself. All it takes is taking some measures and considering many other options. They are available everywhere. Most of them will come from within you. We have covered major facts about credit card debt settlement agencies. The choice is yours whether you still want to go that route.If you do not want to go that route, why not find out more information about settling your debts from here.