Debt Settlements - Why Credit Card Companies Are Becoming More Generous With Debt Settlements
It is finally the turn of the debtors as creditors are now back-pedaling from their earlier aggression.
Where as the latter were always calling the shots, people in debt were increasingly harassed a lot and quite a few hairs turned grey as they tried to come up with ways to repay loans.
But now thanks to debt settlements, debtors can breathe slightly easier.
Debt settlement companies have grabbed the bull by the horns and people owing money, particularly to credit card companies, can kick back a bit.
This is because they could well end up paying a far lesser interest rate than what was being charged by the same companies, which sometimes went into the thousands of percentage points.
The word cut-throat would not even begin to describe the situation.
When it comes to debt settlements, a lot depends on the ability of the company to negotiate with the creditors.
Purveyors of plastic have no option but to be generous when it comes to settlements.
If they did not accept what was being offered by the debt settlement company on behalf of its client, they would stand to lose not just the interest but the principal as well as many debtors would go into bankruptcy trying to keep up with payments.
Defaults The recession has meant more and more Americans were in default in repayments and with debt settlements, many can pay at their leisure so to speak.
Repayment periods have been extended and interest rates lowered, often down to the single digits in terms of percentage points.
Pushed into a corner by more and more people defaulting on payments, those dealing in credit cards simply had to lend a patient ear to those owing them money.
Debt settlements in that sense have been of use to those owing money and those who are owed money.
Without it, many card firms would probably have gone into default themselves.
Much of the credit for this new-found generosity could probably go to the US government who by bailing out large financial institutions made them realize how hard it can be to get by without a helping hand.
It also perhaps helped them learn a lesson that charging exorbitant interest rates on rolling payment plans was not the best way to go about drawing in or even retaining customers.
Where as the latter were always calling the shots, people in debt were increasingly harassed a lot and quite a few hairs turned grey as they tried to come up with ways to repay loans.
But now thanks to debt settlements, debtors can breathe slightly easier.
Debt settlement companies have grabbed the bull by the horns and people owing money, particularly to credit card companies, can kick back a bit.
This is because they could well end up paying a far lesser interest rate than what was being charged by the same companies, which sometimes went into the thousands of percentage points.
The word cut-throat would not even begin to describe the situation.
When it comes to debt settlements, a lot depends on the ability of the company to negotiate with the creditors.
Purveyors of plastic have no option but to be generous when it comes to settlements.
If they did not accept what was being offered by the debt settlement company on behalf of its client, they would stand to lose not just the interest but the principal as well as many debtors would go into bankruptcy trying to keep up with payments.
Defaults The recession has meant more and more Americans were in default in repayments and with debt settlements, many can pay at their leisure so to speak.
Repayment periods have been extended and interest rates lowered, often down to the single digits in terms of percentage points.
Pushed into a corner by more and more people defaulting on payments, those dealing in credit cards simply had to lend a patient ear to those owing them money.
Debt settlements in that sense have been of use to those owing money and those who are owed money.
Without it, many card firms would probably have gone into default themselves.
Much of the credit for this new-found generosity could probably go to the US government who by bailing out large financial institutions made them realize how hard it can be to get by without a helping hand.
It also perhaps helped them learn a lesson that charging exorbitant interest rates on rolling payment plans was not the best way to go about drawing in or even retaining customers.