If you are behind in your bank credit card payments, one option to solve the problem is using debt settlement. This option is more drastic than debt relief efforts, which reduce the interest rate or payment amounts, but less drastic than bankruptcy.

When you engage an agency to help you use debt settlement on your credit card debt, you start paying a monthly amount into a savings-type account set up by the agency, instead of making a monthly payment to the credit card company.

Hector Milla Editor of the “Credit Card Debt Free” website — http://www.CreditCardDebtFree.org — pointed out;

“…When the amount that you have collected in this savings account is large enough, the agency contacts the credit card company on your behalf and negotiates a lump-sum debt settlement for less than the balance on the account. The agency will work to remove all interest charges and late penalty payments that have been added to the balance, and reduce the amount that was actually charged to the card…”

This method of debt relief can allow debt holders to pay off large sums of money owed to credit card companies in a shorter period of time than it would take with minimum payments. Debt settlement accounts are usually targeted to pay off the debt in three years or less, depending on the willingness of the credit card companies to negotiate, and your ability to make payments to the savings account.

The agency may charge a fee for the services they provide during the debt settlement process. This fee should be factored into your overall savings when deciding on this process.

“…Engaging in a credit card debt settlement process will not improve your credit score, at least in the short term. Credit card agencies will continue to try to collect the money you owe them, and your payments will be recorded as late, until the debt settlement is negotiated…” added H. Milla.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.CreditCardDebtFree.org