There are so many debt settlement firms advertising their services that we assume their promises are true. Sadly, when they promise to eliminate credit card debt, they deliver little or nothing for the money they have collected from already stretched consumers.

Debt settlement Firms charge too much for their services for the average consumer debtor to be able to afford to pay off a reduced-balance credit card debt before it charges off and is sold. They want $1800-2400 to settle $12,000 of debt. And they want to be paid first! They advise you to stop making credit card payments and to pay them instead, saving money in their account for an eventual settlement. Debt settlement firms do not deliver what they promise, according to MSNBC. Some banks will not even work with debt settlement firms, according to the Wall Street Journal.

Most credit card banks write off, or charge off, bad credit card debt six months after non-payment commences. In that time, indebted consumers cannot save a thousand dollars a month or more to quickly develop a lump sum for a reduced settlement payment. Hence they are faced with seven-year negative marks on their credit reports, as well as collections and possible lawsuits, a far cry from the elimination of their credit card debt.

Junk debt buyers buy bad debt from credit card banks in large chunks for 10 cents on the dollar. If a consumer has continued paying into a debt settlement program, by the time there is money for a reduced settlement, the original creditor no longer owns the debt. Then it is time to use consumer protection laws like the Fair Debt Collection Practices Act to fend off these parasites, according to the Credit Card Debt Survival Guide. If the consumer is unwise enough to settle with the junk debt buyer, the debt buyer will simply sell the unpaid balance to another junk debt buyer who will resume collection efforts. When it is all said and done, DIY-do-it-yourself is the way to settle credit card debt for reduced lump sums. That way the consumer has control of the situation and their best chance to Eliminate credit card debt .

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