A Credit Card Debt Settlement Agreement is an agreement between a credit card company and the cardholder to accept a reduced payment in exchange for settling the debt. This type of agreement can be beneficial for both parties, as it allows the cardholder to pay off their debt at a reduced amount while allowing the creditor to get paid back some of what they are owed. In order to reach a settlement, both parties must agree on the terms of the agreement which could include an upfront lump sum payment, an installment plan with regular payments and/or a set timeline for the debt to be paid off. Both the creditor and the cardholder should carefully review any contract prior to signing.
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