Credit card has become indispensable nowadays. With the rising costs of basic commodities and worsening financial crisis, more and more people love to shop with credit cards. Increasing interest in the outstanding balance of credit card bill is caused by the late payments or missed payments. Many individuals ended up accumulating huge amount of credit card debts. Statistics show that the average credit card debt per household is as high as $15,788.

Getting stuck in a credit card debt problem leaves you a no-less-than-good option – credit card debt settlement. The creditor, credit card companies and debtor shall agree for an „offer in compromise“ (a legal terminology that means paying a reduced balance in full). Consequently, part of the existing balance will be waived by the company. Usually, 30-70 percent is given by debt settlement companies as final payment. With the entire process being perfectly legal, you will be assured of two things: a clear credit card debt record and, finally, peace of mind.

The debtor can make the payments by himself. He can also ask the assistance of a debt settlement company or a lawyer. Oftentimes, payments are made either by pre-determined accumulated fund or by lump sum cash. So, for how long will the settlement period take? It will most commonly eat up three to nine months or more. The debtor’s current financial status will spell the difference.

With credit card debt settlement, the debtor faces a number of the process‘ pitfalls. A marred credit record, debts with other companies, troubles with tax and even lawsuits – all these can be experienced by the debtor. Longer settlement period means getting close to a case against you filed before the court.

Are you on the brink of bankruptcy? Rush to your creditor. It can take a toll on your credit history for staying as long as 10 years or more and may strike your chances for getting loans from other lending companies.

Credit card debt settlement usually risks not just the debtor, but also the credit card company. For credit institutions, the risk is having a hard time collecting the actual charges if the debtor is on the verge of bankruptcy due to accumulated debts from other credit companies. This usually happens if the debt settlement is done through debt settlement companies, where there is an additional 40% fees or more.

Credit card holders need to look for reliable contacts, through expert skills, to get a fair debt settlement. It is their right.

Learn more about Credit Debt Settlement, visit debt relief solutions to find the best advice on how to get out of debt.