A credit card debt is a unsecured debt accumulated by customers when they purchase any item via credit card and the debt increases with the addition of interest and penalties if the consumer is unable to pay and soon theses debts becomes unmanageable and a huge liability.
The only way to deal with such situation is to opt for debt negotiation and settlement which will help you in dealing with your debts.
However, even the debt Settlement Programs has their own set of limitations and not everyone can qualify for it.
A person who has over $10,000 of debt amount can ideally for these professional settlement programs as it is considered that a person below that debt amount can easily eliminate his debt by applying some self measures.
A debt settlement program works on the theory that your professional advisor will negotiate your loan with your creditor and try to get it reduced by atleast 50- 60% but, for that a debtor should have a considerable amount to qualify for the settlement.
Even the credit card company looks at the total outstanding amount which a person carries and if they also feels it huge then only they agree for a settlement deal.
The other thing is the financial condition of the client.
The settlement companies are there to help that who are genuinely not in a stable financial condition and is impossible for them to repay the loan and that is why they resort to this alternative.
The main idea behind the setup of the settlement agencies is to reduce the bankruptcy cases which were on a all time high due to the recession.
So, a proper analysis of a person financial background is done by theses companies before signing a deal with them as many fraud customers can also come up in the favor of getting their debt amount reduced.