Our credit card settlement calculator helps you understand how much you can save and how long it would take to become debt free when you decide to settle your credit card bills.
What do you mean by credit card settlement?
Credit card settlement is a popular debt relief option which helps you save money on the total balance accrued on your credit cards. It involves intense negotiations with creditors so that you can save a significant amount excluding the settlement fee.
When should you settle credit cards?
You should consider settling credit cards when you’re overwhelmed with debt and want to get a feasible solution.
Credit card debt settlement helps you get rid of maxed-out credit cards by paying less than what you owe. The credit card settlement company negotiates with your creditors on the basis of your affordability. Their goal is to maximize your savings and minimize your debts. And, all you need to do is make monthly payments to the settlement company so that they can save them in a dedicated account, and complete the negotiation process as soon as possible.
Once the negotiation process is complete, the debt is finalized, and the payment is made, your credit cards are settled.
Generally, you should settle credit cards in the following circumstances:
- You owe more than what you can pay
- You don’t want to get sued
- You want to be debt free soon
- You don’t want to pay penalties
- You want to clean your credit report
How soon can you be debt free?
It depends on various factors. For instance, you can expect to be debt free sooner when you make higher monthly payments. If your total credit card debt amount is $5100 and you can pay $1000 every month, then it will take only 3 months to become debt free.
Now, just change the details in our credit card debt calculator. Increase your monthly payment amount to $2000, and you’ll find that you can be debt free within 2 months. This means you can attain financial freedom one month early.
Disclaimer: Our credit card calculator is a self-help tool. The result is based on specific circumstances and it can vary when figures are changed.