Do-it-Yourself Credit Card Debt Settlement
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Are you tired of creditors calling? Is your mailbox full of debt collection letters? Unless you are in such dire straits that you cannot save any money, you can settle your credit card accounts for a reasonable amount and increase your credit rating. The good news is that you can negotiate a credit card debt settlement for yourself. But you have to go about it the right way.
A credit card company will not settle if you are making payments. The further behind you are, the more likely you can settle and the lower your settlement amount will be. You have something they want—money. But make a payment only on terms you are comfortable with.
How to Negotiate a Credit Card Debt Settlement
First, you have to save, save, save. You will need to come up with a large one-time payment and you will only be given a short period of time in which to make it. A favorable settlement is 40% or under. It is almost unheard of to get a settlement under 20%. So it's a good idea to have about 30-40% saved before you try to settle the account.
Before you call make sure you have all pertinent information such as letters or bills in front of you as well as a calm attitude and a set settlement amount written down. Remember that the creditor's goal is to get money from you NOW. They will not likely want to agree to your terms and will try to get you to make a payment immediately. If you cannot get past a stalemate, ask to talk to a manager or hang up politely and write a letter outlining your plan to pay the debt.
Do not ever be rude to a debt collector. This can make a settlement less likely. Keep meticulous records of all of your phone calls and written correspondence. If you do reach a settlement over the phone, do not make payment until you receive a letter from the creditor stating the settlement.
If you are prepared and have the patience to get the settlement you want, you can increase your credit rating and avoid bankruptcy.
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