The success of any debt settlement program will be dependent upon your creditors willingness to negotiate and settle with you. If your credit card company has a policy of not offering any settlements then you will not be able to settle with them in most cases.
What you can choose to do is wait until they write your account off or do a charge-off and deal with a debt collection agency or a debt purchaser. This is known as the second and third stage of the debt collection process. This usually occurs after six months of your account being delinquent.
Keep in mind however, the longer you go without settling your account the likelihood of it being sued by one of your creditors increases.
Just because one creditor refuses to work with you does not mean all the others will. You may just have to get on a hardship plan with one creditor and settle all the rest.
Doing this will still result in significant savings on your debts.
Another instance where debt settlement may not work for you is if you are unable to build up a settlement fund.
If you do not have the money to offer to your creditors when they are ready to settle, you will not be able to take advantage of their settlement offers.
You must maintain discipline and put aside as much money as possible into a settlement fund to have ready when your creditors are offering you a 50 to 60 to 75% discount on your credit card balance.
Cut down your expenses as much as possible during the 6 to 12 month period you are trying to build up a settlement fund.
That’s all I have for today.