If you have high credit card debt, you might be able to settle the debt for less than the full amount. If you plan to do-it-yourself there are dangers you should be aware of.
Credit card settlement involves negotiating with the creditor company via an offer to settle the amount you owe with a lesser amount. In the event that the creditor accepts, you must be prepared to pay the entire negotiated settlement amount up front, in one lump sum.
You Stop Making Payments to Have Enough to Offer a Settlement and Your Credit Card Company:
Keep in mind that even if you notify the creditor of your intent to settle, legally the creditor does not have to stop from trying to collect payments from you. If that wasn't bad enough, on a daily basis be prepared to receive multiple calls from bill collectors. The more emotionally upset you are, the quicker you will send a payment is the collectors
Key takeaway, know before you attempt do-it-yourself debt settlement even the Federal Trade Commission warns that lacking legal expertise during debt settlement can have a long-term negative impact on your credit score. For a better, less stressful, more successful debt settlement – hire an attorney.