How to Settle your Credit Card Debts
Credit card debts constitute a large portion of consumer debts. Most debt stricken consumers are found to owe huge credit card bills that have spiraled out of their control with rampant use of credit card. If you too have gotten yourself into insurmountable credit card debts, then credit card debt settlement can be quite helpful for you.
So, if you want to know what is debt settlement and you are considering settlement of your credit card accounts, then you might the following tips useful:
- Collect all your credit card bills and determine how much you exactly owe to each credit card company. Then add up all the figures to find out your outstanding debt amount.
- Then contact your credit card issuers individually and inform them that you are financial strapped and are willing to settle your credit card accounts. Make sure high interest credit cards are kept at the
- It is advised that you save up a decent amount before you make your settlement offer to the credit card company, because large settlement amount will increase the chances of getting your settlement proposal accepted.
- Once you have saved some money, you can make your settlement offer. However, try and offer a realistic amount that you can afford; otherwise you might find yourself stranded in even worse troubles.
- Do not forget to tell your creditor that you might have to file for bankruptcy if your debts settlement offer is declined. It will further increase your chances of getting the settlement proposal accepted. The credit card companies are well aware of the fact that a bankrupt debtor is a lost venture whereas debt settlement is ultimately a profitable deal.
- There are major chances that the credit card company will want to modify your debt settlement offer. Negotiate on the settlement amount logically. But make sure you do not negotiate on anything more than 50% of the outstanding debt amount.
- Usually settlement amounts can be paid either in installments or in a single payment. So, once the settlement amount is determined, negotiate a payment plan with your creditor so you can pay off the amount in affordable installments.
- After your credit card accounts get settled, make sure the credit card company reports your accounts to the Credit Bureaus as “paid” or “settled”. It is important because settled accounts will appear on your credit report and boost your credit rating.
If you are not quite comfortable negotiating with the credit card company directly, then you can sign up with a reputable Better Business Bureau accredited debt relief company that offers debt settlement services. The company will negotiate with the credit card company on your behalf and get your accounts settled successfully.