Is settling a credit card debt good? what are the consequences?

CC company have offered to reduce the tot. amt. by 1/3 and settle or pay the total amount with very low interest rate. Which is better. According to them 2nd option is better( b/c of credit rating ). But 1st option look good to me.

So either i can pay .33 cents for each dollar owed and settle or pay $1 plus 2% interest per dollar owed and pay in full.

1st option will show %26quot;settled%26quot; for 7-10 years, while with 2nd option my credit rating will not be effected.

Is settling a credit card debt good? what are the consequences?

Settle it. The debt is satisfied, and you can use the rest of the money for something else.

Is settling a credit card debt good? what are the consequences? loan

If you%26#039;re not planning on buying a house, car or any other thing that requires good credit for the next 7-10 yrs. then settle it. If not just work your butt off to pay off debt in half the time!|||you visit on web site for dettiles|||Debt settlement is a process in which an organization will go to your lenders and negotiate with them regarding your debt. The purpose of the whole exercise is to reduce your debt burden. If a settlement company is good it can get your debt reduced by as much as 50%. This is what a creditor needs and this is the most visible benefit of debt settlement. The amount of the debt is reduced, the repayment plan is made easy and often the monthly installments are spread over a long period. This makes life a lot more easier for the borrower.

However, debt settlement is not without its drawbacks. There are two things to worry about. First, is the cost of debt settlement. Debt settlement companies will charge huge amounts for their services. The usual range is between 10-15% of the debt amount. Paying this much amount upfront can turn your financial situation from bad to worse. Read more from: http://www.credit-card-gallery.com/credi...|||It%26#039;s always better to pay any debt in full. Not only is it better for your credit rating, but it%26#039;s good for your conscience as well. You had a debt and paid it off!

If you do take the first option, be sure you get the offer from the company IN WRITING, and never ever throw that away. This way, if they or anyone else tries to collect on the debt, you can show them this as proof that the debt was settled. Do not pay them anything until you receive that piece of paper.

Also, do not allow them electronic access to your account. They can take out more than was promised and you won%26#039;t know about it until it%26#039;s too late. You can complain to them about it, but getting the money back from them when you owe them money will be very difficult. Your best option is to pay them with a cashiers check or a money order.