Negotiating settlement credit card debt does not have to be a painful and difficult experience! So many people have the impression that the entire process is akin to some sort of medieval torture. This is far from true. While settling your credit card debt is not a walk in the park, by any stretch of the imagination, it is not as bad as it’s made out to be. Below we will walk through the steps to make credit card debt settlement as easy as possible.
Step 1: Get a free credit report. Getting a credit report will help you to understand where you are financially. If your credit score is very low, you will have a harder time getting your creditor to settle favorable. However, if you have fairly good credit then you can use this to your advantage when negotiations begin.
Step 2: Gather all letters that your creditors have sent you. This is important because these letters can potentially be used against your creditors’ later. U.S. law prohibits a creditor from using intimidating language in letters that they send out. If they have sent you letters with threats, then you can use this fact to get a much better settlement outcome.
Step 3: Collect all your credit card bills. By having all of your credit card statements in one place, you will be able to quickly determine your total debt. You can also easily see how much you owe each creditor. You will need this information for step 4.
Step 4: Figure out how much you can repay. Typically, a favorable credit card debt settlement would be one that reduces your obligation by 40-60%. You will need to determine exactly how much you can repay and how long this will take.
Step 5: Start the first draft of your debt settlement letter. You will want
to explain the reason you need a settlement in the first place. Reasons could include medical trouble, job loss, and a number of other reasons. You will want to re-write your debt settlement letter about 3 times. This will give you enough time to review the letter thoroughly and you will find every grammatical mistake.
Step 6: After you are happy with you finished letter it is time to send it in. At this point you have done everything you can. It may be difficult, but you just have to be patient and wait for a response.
After going through all of the steps outlined above, you should be in a position for a favorable debt settlement agreement. I wish you luck with your settlement!