Settling with Credit Card Companies- Could it be Unethical?
Settling with Credit Card Companies
If you said "you bet", fair enough. I can certainly understand your opinion that settling with credit card companies could be unethical. At the same time, it's not unethical to resolve your credit card debt if you cannot afford to pay it. If the lenders agree to receive less than the total owed, what's wrong with that? Not surprisingly, people's expenses alter continuously. There is no guarantee exactly what the future may bring about.
With the economic crisis, several debt collectors are usually negotiating for reduced amounts than normal. Prior to the economic downturn, the typical settlement amount ended up being approximately 50%. Today, the typical settlement has been reduced to roughly 42%. This would mean that the usual negotiation repayment is only around 42 cents on the dollar.
When settling with the creditors, you're simply paying back what you can manage. If perhaps you all of a sudden quit paying your credit card debt for no legitimate explanation, that would be viewed as unethical.
Is This Unethical? You Be the Judge
A creditor offering $30,000 of credit to someone and encouraging her to make minimum monthly payments so the lenders can easily obtain about $321,000 in principle, interest, fees and penalties after payment is made in full!? creditcards.com will show you the length of time it will require to pay-off a charge card debt.
How Greedy Can They Get?
Is this moral? Changing your due date without informing you so that they can charge you a late fee? This happens constantly. If it's stated within your contract, they're able to do it. Making your monthly payments about ten days in advance may be the only possible option (unless of course you want to contact customer support each week to find out if the creditor has changed the due date!)
Is this ethical? Creditors, for no clear explanation, raise your interest rates to 29.99%, even when your credit is good? Picture that. You do not miss a monthly payment and all of a sudden you get a notification that tells you that your interest rate will be higher. It's taking place a lot nowadays. However, President Obama signed a bill that will stop lenders from increasing rates to outrageous percentages.
Is this process ethical? Changing your billing period so that the payment will become owed on a Sunday, to enable them to assess a past due charge since they are aware the banking institutions don't wire the money on that day!
These are just a few of the many 'stunts' the lenders have up their sleeve. It really is regrettable that the credit card companies are taking advantage of consumers.
Now, Do you really believe it is unethical settling with credit card companies?
About the Author
Debt Free Solutions is a financial consulting company that assists Americans across the U.S. to eliminate their credit card and other unsecured debt (e.g. medical bills, collection accounts).
We utilize various programs and strategies to assist them to get rid of their debt in the quickest, most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.
We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply help you settle your debts with your creditors- nothing more.
On the other hand, we provide additional services to significantly help to minimize the risks that are involved with negotiating with your creditors.
First, we offer a free, no-risk 10 day trial service. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.
Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!
Also, we offer free attorney consultation (a maximum of five sessions) in case one of our clients’ creditors files a lawsuit.
Last, we provide a written guarantee that our clients’ creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.
Our services are competitively priced- and include the above services!
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