Credit card debt is harrowing experience for many users. To lure such credit card users, there are many agencies that promise to settle the dues at huge discount. They may promise to settle your debt of thirty thousand dollars to less than ten.

If you are a distressed credit card user, such promises may seem to come from heaven! Before approaching such company know some facts about debt settlement of credit card and its consequences.

Settling debt of your credit card adversely affects your credit rating. Your credit rating gets damaged when you are unable to pay what you owe. As such, financial institutions will be skeptical to grant you loan in future.

You may be subjected to higher rate of interest, due to damaged credit rating. The debt settlement company that claims your credit rating will not be affected is lying. Stay alert about their other promises.

Credit card companies have some qualifying criteria for debt settlement. Make sure that you qualify for settlement of debt, before approaching a settlement company. Individuals who have legitimate reasons and unable to pay debts due to financial crisis; qualifies for debt settlement.

Such crisis situations may include death of major holder, divorce, job loss, accident and catastrophic loss of property. Ask your credit card company if you qualify for debt settlement.

You may also request credit card companies to allow deferred payment. This is good idea when you are undergoing temporary financial crisis and expect to recover within few months. Under such condition you are not settling the debt, just managing it by delaying payment. It helps to maintain your credit rating.

If you qualify for debt settlement and a deferred payment is not viable then try to deal with credit card company without any middleman. For settling your debt, a settlement company would charge a fee. When you are already in debt, it makes sense to reduce your cost.

When you are not comfortable to deal with credit card company, then look for a settlement company registered with TASC (The Association of Settlement Companies) to ensure a fair deal. Read terms and conditions, fine prints and clarify doubts while selecting a credit card debt settlement company.