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Credit Card Debt Settlement – Ways to Negotiate a Settlement With Creditors

Posted by on March 17, 2011 No comments
Paul Sarwana asked:




Credit card debt affects more people than you know. Just about everyone you talk to has at least 2 credit cards tucked away on their wallet. With the way the economy is today it is no wonder that people are finding it harder and harder to pay these credit card bills. Credit card bills are usually the last to get paid and they are the ones that go up the fastest. With finance fees, late fees and over the limit fees, your bill can easily go up by $100 per month if you are far enough behind.

Most people feel that there is no way out of this and therefore they ignore the bills. This can be very harmful to their credit and will haunt them for a lifetime. Many people do not realize that they can most likely cut the credit card debt in half if they seek a credit card debt settlement. The trick is to know how to approach the credit card company to ask for this settlement.

You need to try to have some cash to work with. This will be helpful for when you call the credit card company and ask for a settlement. What you need to do is call and talk to a financial or collections person at the credit card company. Be very polite and tell them that you have x amount to offer them for a settlement. Most of the times they are able to offer you a certain discount.

Keep in mind that they have the ability to negotiate the amount of the settlement. They will start off by offering you the smallest break on the bill. Generally they can offer you at least 50% if not 70%. Most cards can offer a total of a 70% discount on the total of the bill if you are paying it off right away.

When you call you want to know what your total bill is and start off by offering them 70%. You can always negotiate up if they will not go for that low of an amount. Just be prepared to pay what you and the credit card company agrees on. This will save you a great deal on the debt so you will not have to pay the entire bill.

This will take the bad mark off of your credit or at least show that the debt was paid in full by you. It will show that it was a settlement but the key thing is that you paid it off in full regardless of the amount. If you find that you have credit card debts that are burying you, then you may want to consider calling them and seeing of you can do a credit card debt settlement.

Yvonne

Credit Card Debt Settlement – Can I Do it Myself?

Posted by on January 22, 2010 No comments
Paul Sarwana asked:




With the way the economy is today, it is no wonder that people with credit cards have maxed out the cards. They are left with little to no money to work with to pay off their debts and they are getting buried with late fees and finance charges. In some cases credit card companies will send settlement offers to people to try to clear off the debt. If you talk with the companies directly you may be surprised as to what you can actually get. But, can you settle your debts by yourself?

The first thing that you need to do is get all of your credit card in order and get all the account info for each card: contact number, account number, amount owed. By seeing exactly what you can afford to put on each card you will have a starting point to go with for paying off all of your cards.

The next thing you will want to do is write down what you want to say. This will help you to stay on track when you talk with their representative. Anytime you speak with the creditors about settling the debt, you want to ask for the offer in writing. This way you have a written record of what was offered.

If you are stuck as to what to say to them when they call you can go with a simple script that lets them know that you are unable to pay them at this time but that you will have a lump sum of cash on a certain date and that you would like to settle your credit card bills. Then let them know that you will use that lump sum of cash to pay which ever company can give you the best deal. Do this with each card and see what deals they will give you.

You can expect to get offers in the amount of 25 to 35% off the total amount due. If you want to learn how to negotiate with the creditors you will be able to pay off your credit card debts by working out a settlement on your own. However, if you don’t want to settle your debts by yourself there are a number of debt negotiation services that can help you get your debt settled for a much less amount then you owe with a reasonable fee.

Clyde

Why do so many people keep going into credit card debt?

Posted by on November 30, 2009 11 comments
thinkaboutit asked:


Question? What makes people keep using them when they see the destruction it is causing?

Many people, mostly younger folks and women, have so many credit cards they end up in severe debt and ruin their credit for many years to come. Credit card applications are mailed out by the tons and people keep activating them knowing the interest rate is or will be up to 20% or higher. Everyone needs at least one credit card and no more than two. You also need one revolving (department store) credit card to establish a good credit history. The limit on the credit card(s) should be no more than 10% of your annual salary and the revolving card half that. Always make a minimum of a double payment on all your credit cards and pay on the due date. Never ever be even one day late. The interest rate and late fees will destroy you. If you are experiencing problems the first thing you need to do is carefully cut the cards up and throw them away. If you can not afford to pay the total monthly bill attempt to get a consolidation loan to get out of debt. The monthly payment will be less than the total monthly payment of all your cards with a much lower rate. Some banks and credit unions will be willing to help you out if they know why you are taking out the loan. Financial debt can create so much strain it can even destroy your peace of mind and your marriage. Don’t fall into that trap.

Lucas

Credit Card Debt Out of Control? How to Negotiate and Reduce Your Credit Card Debt

Posted by on May 26, 2009 No comments
Mary Kuriakose asked:




If your credit card debt is unmanageable, you need to venture out options that will help get rid of the debt. The magic word is negotiation. Let us see a step by step procedure to eliminate your card debt.

The credit companies offer a lower APR for a stipulated period, for few billing cycles, to make the payment easy and affordable for you, e.g.: an APR of 3.9% on a credit card with an original APR of 35%. Most of the c cards charge somewhere between 15 to 20%, but there are indeed a few which charge as high as 30% or above. Their business largely depends on the benefits they make from over due charges and late fees, but if the debtor is knee deep in debt and on the brink of bankruptcy, the banks are forced to plan alternatives to make them pay the loan. List down the offers you get and speak to your credit card company, mention about the offers and validate if it is valid on your card. At times the customer representative would be good enough to authenticate, but if not, try to speak to someone with authority. It is important to convince them about your financial crunch but the willingness to pay off the debt. Get the confirmation from the creditors in written.

Transfer your balance from high rate card to low rate credit card, which means, if you have credit cards with APR 10%, 18% and 30%, transfer the balance from the 30% APR to one with 10%. This significantly reduces the debt you owe.

You can avail the debt consolidation loan to pay off the card debt. However it is extremely important to abstain from any unnecessary expenditure. No remedy would fix your credit card debt unless you plan a budget for yourself and prioritize your needs. Cut down expenses wherever possible and try to pay off the debt first, any delay would keep increasing your credit card debt.

At times the creditors might not be convinced enough with your reasons and commitment to pay and then you might need the help of a professional. If your credit card debt is over $10000 it is worth referring an expert. Debt settlement companies have professionals who are adept at debt handling. Their knowledge and expertise in debt can be utilized to eliminate the debt up to 50-70 percent. This helps you pay off the debt in 2-3 years flat instead of stretching it for 30 years or so.

Jared
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