We have heard a lot about settlement firms.
Is this a fair trade? This is a debatable aspect.
Loan takers have a very different opinion than loan giving companies.
The simply do not have to pay through relief options.
Hence according to them, settlement options are very fair and unbiased.
Loan giving companies do not benefit from relief alternatives.
They lose a lot of money.
For them, is this a fair trade? The answer to this question requires a proper explanation.
Hence, let's have a look at some important points.
1.
How are loan giving companies suffering? A settlement process operates in a very simple manner.
The process starts with searching.
A client starts looking for suitable firms.
He looks at multiple organizations and compares their services.
Then he finalizes a firm and communicates with management.
After that, the management communicates with the credit card company.
Every application is not accepted by bank.
They look at the records of the customer in a detailed manner.
The credit score plays the role of a decisive factor.
If the banks are losing money, is this is a fair trade for them? The next step involves the negotiation process.
If you need to wave off a large section of your credit card bill, try and get an upper hand in the negotiation process.
Mostly customers who complain of not getting good elimination rates are not successful in the negotiation process.
Under all conditions, credit card companies are not able to get their original payments.
If a client has spent ten thousand dollars, he will never return the same amount.
With the application of interest, the payable amount would be more than ten thousand dollars.
Hence for credit card companies, is this a fair trade? They are not even getting their principal sum.
Thus, this solution is biased towards loan takers.
Recession is a different situation.
According to the present conditions, is this fair trade loan giving companies.
Settlement options provide a lot of advantages to credit card companies according to the scenario.
If they agree to negotiate with the customers, they can prevent a bankrupt situation.
2.
How do financial companies approach bankruptcy? What happens when a client declares bankruptcy? A credit card company will not be able to claim anything from the credit card customer.
This is a huge loss.
In this case, is this a fair trade for loan givers? It is better for credit card organizations to shift its focus.
It should not concentrate on the amount that it will be able to claim.
If settlement options are preventing bankruptcy for loan giving companies, is this a fair trade for them or not?