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Settle Credit Card Debt

By Edited Apr 29, 2016 0 0

You may have heard about settling credit card debt and how you can negotiate with your credit card companies so that you only have to end up paying a fraction of what you owe overall. The truth is that settling credit card debt can give your relief from having to payback a portion of your credit card if you can convince your credit card company that you have no other option and that you are going to be forced into not paying back the balance on your card. The best way how to settle credit card debt often involves a long and drawn out process where you initially establish contact with your credit card company to inform them that you are having difficulty making such payments and that there is a chance that you will never be able to make such payments. Ultimately it is up to the credit card company whether they grant you a settlement or not, and it truly can go either way even if you have stopped making your payments, and you can clearly show the company that you are not making enough money to make your monthly payments.

Even though you can never be sure that a credit card company will allow you to settle credit card debt yourself without a third party, the majority of the time they will give your situation some serious consideration before they issue you a complete denial. This is because credit card companies don't like when accounts fall into default because they will then obviously lose money, and this is not how these companies stay in business. These credit card companies do not want to be involved in an extended collection process, and they definitely don't want to have their debt to be discharged in bankruptcy, so from their perspective a credit card debt settlement may be a feasible option as long as you can demonstrate a clear inability to payback your debt. Credit card companies obviously don't want it to leak out that they can offer this option to their customers, and this is why it can sometimes be difficult to get things moving when you want to settle credit card debt fast.

You need to show that you are not trying to scam the credit card company, and this means that you need to follow an appropriate timeline for establishing contact and staying in touch. You first should allow yourself to fall behind on your payments by a few months before you first contact your company. If you are currently paying your other credit card accounts then your company may see this and ask you why you are paying those but not theirs. You must be prepared to handle questions like this or you credit card company is simply going to reject your willingness to negotiate. Once you have fallen behind on your payments you can then begin to ask them if they offer settlements and how you should go about requesting one.

Always ask to speak with a manager or someone that is of a position of authority before you ask this to avoid wasting your time with someone that only answers phones. You should then fully explain to this person that you are in some serious financial trouble, and that you are considering bankruptcy. You will then have to bring up the settlement option somehow and explain to them that you are willing to consider such options. It may take anywhere from three to nine months before you reach a deal, and once you do you can then expect anywhere between a thirty and seventy percent settlement and this will of course depend on your own financial situation and negotiating skill. It is very rare to receive a full settlement from any one particular credit card company, so don't get your hopes up if this was your goal going in. To settle credit card debt so that you can be free of a good portion of your credit card balance is not easy, and you must be willing to go back and forth with your credit card company before any sort of final decision is put forth. Just because settling credit card debt isn't easy doesn't mean it is impossible, and as long as you can hang in there you'll eventually get your settlement deal hopefully.

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