Is Credit Card Debt Relief Programs Exactly the Same?

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As the credit card bankruptcy rate continues to rise among customers, it's important to understand the differences between CCCC and CCVC. Credit card debt relief plans are not exactly the same, and comprehending that the differences can help you discover the appropriate program for your situation. Learn what the differences are between the 2 different types of debt relief.

What is CCVC? CCCC is brief for Card Creditors. This is a group of financial institutions that currently have agreements with card companies to make payments to them on a monthly basis, at the end of which they'll be repaid. CCCC only repays up to the amount owed, leaving the person who had been getting these payments accountable for the residual balance.

CCCV stands for Credit Card Creditors and VCCI stands for Value Settlement Card Indebtedness. All these are different from CCCC since the former only attempts to repay the sums owed, while the latter attempts to negotiate with the card company in order to locate a way to settle the debts at a lower rate. In the end, the CCCC will merely have to settle the card businesses.

What's a debt settlement arrangement? A debt arbitration agreement is an arrangement between the card businesses and the consumer, which will allow the individual to quit making payments on their debt, but instead send the debtor's a portion of the amount that they owe, split between all creditors. It permits the person to pay off the remaining part of the debt at a rate lower than they had been originally paying.

Why choose debt settlement? Debt settlement enables somebody to get a reduced payment for all or part of their outstanding accounts through negotiation. This can be helpful when it comes to fulfilling the credit card companies without needing to file bankruptcy, which would impact their credit score, decrease their available funds, and take weeks to clear.

How can a debt settlement arrangement work? The debtor chooses a debt settlement company, which will contact the card businesses to negotiate Clonedcards.com. They negotiate a payment that is significantly less than the entire amount owed, which is then delivered to all the creditors.

They agree to the payment and send extra funds to the debtor in order to pay back the amount of the new payment. This amounts to paying down the debt at a lower rate.

Debt settlement does not qualify as credit counselling. It's not a method of credit repair. Instead, it is a procedure of charge repayment.