If you’re struggling with credit card debt, you might be considering enrolling in a credit card debt relief program. These programs help you reduce your amount of debt by negotiating with your credit card providers and other financial institutions. If the program is successful, your debt could be reduced and you could get out of your debt within 48 months or less.
However, credit card debt relief programs are not the right choice for everyone, so it’s important to understand how these programs work before making any decisions regarding your debt.
How Do Credit Card Debt Relief Programs Work?
Credit card debt relief programs use a method called debt settlement to help reduce what you owe. Here’s how it works:
- You’ll start by signing up for a credit card debt relief program that uses the debt settlement method.
- You will then stop paying your creditors and, instead, begin depositing money into a designated account the company sets up for you. This account will be used to pay your debt.
- The company will negotiate with your creditors to get them to agree to accept less than what you owe.
- Once an agreement is made with your creditors, you will be asked to sign off on the agreement.
- After you sign off, the debt relief company will collect their fee and pay your creditors using the money you’ve put into your account.
- Once you’ve paid all of your creditors, you will no longer owe any debt.
Most of these programs can be completed in 24 to 48 months depending on how much debt you owe and how much you are able to set aside each month to pay your debt.
What Types of Debt Qualify for Credit Card Debt Relief?
Credit card debt relief programs can help you get out of unsecured debt, which is debt that is not tied to an asset. These types of debt can include:
- Credit card debt
- Department store card debt
- Personal loan debt
- Medical debt
- Some private student loan debt
- Some business debt
What Types of Debt Do Not Qualify for Credit Card Debt Relief?
Unfortunately, there are some forms of debt that are not eligible for relief programs. These types of debt include:
- Mortgages
- Car loans
- Other vehicle loans
- Federal student loans
- Tax debt
You can find out if your debt qualifies for a relief program by contacting a credit card relief company and requesting a free debt evaluation.
Rely on Credit Card Debt Relief Professionals
If you’ve decided a credit card debt relief program might be right for you, rely on the professionals at Progressive Debt Relief. Our expert debt negotiators will work with you and your creditors to settle your debt for good. To find out more about our services or to schedule your free consultation, contact us today.
