K D Garrow asked:




When credit card debts get seriously out of hand, one of the most successful and widely used solutions is to negotiate debt reduction with the companies. A substantial industry known as debt settlement has built up to provide this specialist service on behalf of people struggling with debt, but with the right help and advice it is also possible to undertake the process yourself.

When you ask a professional company to negotiate credit card debt reduction for you, what they will do is try to settle the debt for much less than the full amount. This is a proven technique that can achieve excellent results in the right circumstances and when undertaken by someone who understands the process. It is not unusual to get more than half of your credit card debt written off. This is what you need to learn how to do yourself if you want to negotiate a debt reduction directly with the credit card companies.

A credit card company is unlikely to agree to a reduction in what you owe them just because you ask them to. They are running a business and do not want to give money away. They need an incentive and a good reason to reach an agreement with you to accept less money than you really owe. The incentive is usually that you promise to pay back the reduced amount quickly, preferably in one lump sum. However, they will not even agree to that unless they have reason to believe that the offer you are making is the most they are ever likely to get.

A credit card company will not agree to a debt reduction of 50% or more unless they really believe that is the option that will give them the most money. They are far more likely to agree to a settlement if they think that the alternative is that you go bankrupt and leave them with nothing. They need to know that you really are in genuine hardship and cannot afford the full amount. If you could actually afford the full amount but just do not want to, you can forget debt negotiation because it will almost certainly not work.

Assuming you are really struggling to keep up with repayments on your credit card debt, debt settlement is well worth trying. There are two possible routes to achieving it, either by using a debt settlement company, or by doing it yourself. The main reason for doing it yourself is that you will save on having to pay any of what you save to the settlement company, so you get the maximum benefit from the reductions you achieve.

However, you are not going to achieve a substantial credit card debt reduction if you do not understand how the card companies operate and how they deal with charge offs and bad debts. There are lots of different guides available to take you through the process of how to negotiate credit card debt reduction, the best of which enable you to achieve settlements as good as a professional negotiator.

Many so called guides or systems will offer little of practical use or real value, so exercise some caution if you wish to go down this route. There are a few excellent options, which range from straightforward e-books to video courses and training with one to one feedback and support. Any guide should take you through the whole process in a step by step way telling exactly what to do and when to do it. Good ones will provide scripts for phone calls, template letters and detailed instructions on what to do and when to do it.

You can save time by starting with websites that have recommendations and reviews of some of the best guides for how to negotiate credit card debt yourself.

Ida