Is it possible to get your credit card payment down on a settlement, or is this just a myth? This is exactly what I set out to discover. I am a very skeptical person and therefore the thought of reducing my credit card debt through a settlement seemed a bit too good to be true. I mean how can the credit card companies allow you to pay them less than you owe? Could it really just be a matter of asking them to reduce your debt?
My starting credit card debt was around $5,000. While this may seem like a lot, it is actually below the national average of $8,000. My goal was to see if I could cut my credit card debt in half via a credit card settlement. In order to accomplish this I would need time, patience, and a bit of luck.
The first task on my list was to organize my credit cards according to the amount of interest owned. By doing this, I was able to figure out which cards were costing me the most money in interest each month. Now that I had a solid path to go by I began making calls. At first, it is a bit scary to talk to your creditor. However, after a while it becomes a lot more natural.
The most important thing to remember while on the calls is to be honest. Do not try to make your situation sound more desperate than it actually is because they will be able to sense your lies. Just tell them that you are trying your best to pay off your debt and you need a little help to meet your goals. Let them know that a reduction in your debt would make it possible for you to make monthly payments on time.
A little known secret is that creditors are actually more than happy to reduce your debt. The reason for this is that they would much rather collect some money from you rather than have you file for bankruptcy. If you file for bankruptcy then they get nothing.
After about 2 months of calls, I was able to reduce my debt by a little over $2,000! While this did not quite cut my debt in half…I was more than happy with the result. If you can take anything away from my experience it should be that you don’t have to give up when it comes to being in debt. You have options and the most unlikely people can actually help you to reach your debt free goals. Good luck!
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