Login
Password

Forgot your password?

How to Negotiate a Credit Card Debt Settlement Yourself

By Edited Nov 28, 2015 0 2

You really can negotiate a credit card debt settlement yourself, but it takes some time and ambition. Many people have been able to use avoid bankruptcy and free up some much needed money by doing a little haggling on their own. Why don't you give it a try? What have you got to lose? If you're falling behind on your monthly bills, this could be just the thing to save you some money, and get yourself back on the right financial track. Here's how to negotiate a credit card debt settlement yourself.

Things You Will Need

Your credit card bills

Sample Credit Card Hardship Letters

Step 1

Round up all of your current bills before you begin to negotiate a credit card debt settlement. It's important to know exactly where you stand before you begin to haggle. Take a look at your bills and figure out exactly how much you are behind with each company. Try to determine how much is from actual charges and how much is from late fees and interest. It would be wise to write this information down on a separate piece of paper for easy reference. This is important when you negotiate a credit card debt settlement yourself.

Step 2

Decide how much you can afford to pay each company. You may need to actually sit down and fill out a monthly budget to see just how much wiggle room you have. If you have access to a larger lump sum of money, it will make the haggling a little easier. Large lump sum payments tend to be more appealing to these companies when you negotiate a credit card debt settlement.

Step 3

Make a goal when you negotiate a credit card debt settlement. You'll hear some success stories about people settling for ten cents on the dollar, but that's generally not very realistic. If you can pull off paying only 50% of the balance, you will have done very well.

Step 4

You will want to visit the Federal Trade Commission website before your contact your creditors, so you can learn your rights ahead of time. The companies you'll be dealing with are well versed in the laws, and know that most people that call them are not. Make sure you educate yourself and protect your rights when you negotiate a credit card debt settlement to eliminate and terminate your account balances.

Step 5

It's time to make the phone call to negotiate a credit card debt settlement. Be sure you have all of your bills ready to go for quick reference. When you are connected to a customer service representative politely ask to speak to a supervisor. Be professional, most calls are recorded. When you negotiate a credit card debt settlement, you must sound professional to be taken more seriously.

Step 6

State your case, but don't get overly emotional or upset. Again, the call will likely be recorded, so remain polite, and make sure you only agree to terms you can follow through with. When you make an offer, it's best to start a little low, so you have some room to haggle. Hold firm, but be a little flexible, especially if they are willing to work with you. When you negotiate a credit card debt settlement yourself, you want to act in good faith. And reduce your balances.

Step 7

Request all agreements in writing when you negotiate a credit card debt settlement. This will give you some form of 'evidence' if the company backs out of your agreement. On the flip side, it gives them some evidence if you don't hold up to your end of the deal. When you negotiate a credit card debt settlement yourself, it's important to keep your promises.

Consider writing a credit card hardship letter to your creditors. This can help you reduce your balances quickly.  It's another option to keep in mind.

 

You can get free legal advice 24 hours a day by phone.

 

Why not give this a shot? You really having nothing to lose but the bills that are making you fall behind.

Tips & Warnings

Always act professionally.

Advertisement

Comments

Jul 10, 2010 2:24pm
x3xsolxdierx3x
Great article, Jason! :)
Dec 7, 2011 11:26pm
Jerky
Not bad, Jason, you managed to attract the attention of the spammers on this one! That's usually the sign of success.

... By the way, this is a great article. Very helpful for anyone going through financial hardship. Probably more important now than ever, given the current economy.
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money