Credit card companies – make your settlements carefully!
Avoid credit cards if possible
There are both positive and negative sides of using a credit card. On the one hand, it is convenient to carry it as one does not have to search for change, every time a purchase is made. Also there is no tension of managing a huge amount of cash or any fear of theft while carrying it. But, no doubts, it should be the last possible option to be considered. For instance, in cases when an individual has run out of cash, then the inconvenience of coming again can be avoided by making the purchase through credit card.
However, if one is facing any problems in repayments then it is advisable to avert going to a credit card company. This is because this gives them an indication that there is a credit risk in the loan that has been granted to you, which may lead to some negative effects in future. So it is better to approach them only when one is expecting bankruptcy in future.
Apart from this, there are various other things that should be kept in mind while settling the dealings with a credit cards company. There are various companies that provide debt settlement services. Whereas, one should not just blindly follow the alternative suggested by the company as the only option left, but should him self analyze if it viable to take up the suggested method. Many people often wonder if they are actually eligible to take up the settlement of a debt. In such a case, the eligibility of the customer or providing them with the correct information depends upon the credit card company. The credit card companies, as they are dealing within a risky business, so they are proficient in dealing with the risks. If an individual stops paying their debts all together, then the credit card company can opt for either of the two ways. They can replace the amount owed by taking away the assets possessed by the defaulter. But there is a possibility that the entire amount can still not be replaced. The other alternative is to allow the debtor to pay a comparatively lesser amount than the one that has been granted. This is because the credit card company also wants to maximize its profits and when it can see that getting a payment from a particular debtor is not an easy task, then it resorts to collecting a lesser amount than the one that has been extended to the debtor. So if one is able to convince the company of the lack of resources to pay them the actual amount, then it can be settled for a lower amount.
Time period granted for payment
Generally the time allowed for settling the debt with a credit card company is from three to nine months. However, it is better to settle everything as soon as possible. And in some rare cases, the timeline can also be extended to one year.