The Goals of your debt settlement
- While many people make the decision to settle their debts, they are confused about whether they can keep their credit card open and active. There are of course many such questions which often plague those who want to settle their debt, but do not actually know how to figure out the debt settlement goals.
What Are Your Debt Settlement Goals?
Before opting for debt settlement and understanding your debt settlement goals, you would probably like to know how flexible you would be once you opt for debt settlement.
If the goal of your debt settlement is to eliminate your entire debt you’re probably avoiding using credit at least temporarily. But that is easier said than done and it can be rather inconvenient if you have to live a life without using your credit card. It would automatically from most purchases online and even the flexibility of planning your travel and paying for them.
Debt settlement is fortunately one of the most flexible measures for you and allows you options that debt settlement programs and other debt elimination strategies might allow.
What can you leave out from the goal of debt settlement and what you cannot ?
- In some cases, you can actually leave your credit card out of the debt settlement process. But then, there are no guarantees to this and it is not necessary that might be the case every time. For this you should most necessarily consult your debt settlement attorney.
- Choose to keep a credit card that is not associated with any of your creditors. This will help you lead your normal life and also not get in the way of your negotiating a debt settlement. It would be impossible for you to keep one credit card and settle the other, especially if both are from the same bank or financial organization.
- Choose a card that has a low balance and needs only a small minimum monthly of payment to keep it alive. This is because the maximum amount of cash should be directed towards settling your debts.
- If the credit card you want to keep alive has a universal default clause, then you would run the risk of having the interest rate increased or the credit line reduced if you miss payments on other accounts. The universal default provision allows the credit card company to change the terms of your account. This can also result in closing your account if they think that you might not repay the money due. But if you are smart and make timely payments and keep your balance low, the credit card company will allow you to keep the account alive.
If you can keep a credit card alive as a part of your goals for debt settlement, would make things much easier for you and this will also help you to further understand the goals for your debt settlement.
You might want to try and contact the reputed debt settlement attorney Shah Peerally or his website http://yourdebtsettlementattorney.com/ for further consultations on goals for your debt settlement.