How To Negotiate A Credit Card Debt Settlement
According to the 2010 reports of the US census bureau, the states with highest average credit card debt levels are Alaska at $7,665, Tennessee at $7,054 and Nevada at $6,517. On an average, each credit card holder in the US has a credit card debt of $5,100. This figure was expected to reach $6,500 by the end of 2010. The recent economic meltdown has affected a very large portion of the US population, leaving millions of Americans in debt. One of the best ways to get rid of your debt is to opt for credit card debt settlement.
Tips for Negotiating a Credit Card Debt Settlement
Credit card debt settlement is a process where you negotiate with your creditors to waive 40%-60% of your actual debt. You only pay the remaining portion of your total outstanding debt.
Here are few tips to negotiate a credit card debt settlement:
Call Your Credit Card Company: The first thing to do to negotiate your credit card debt is to call up your credit card company. Give a call to someone who is authorized to receive credit card debt settlement offers, such as a manager or somebody from the loss mitigation department, and talk about negotiations.
Keep your credit card statements and bills in front of you while discussing the matter with the concerned person. Explain your current financial situation and reasons for opting for credit debt settlement. Also, note down his name, extension number, and time and date of the call.
Debt Negotiation: Start negotiating with a low percentage, nearly 25% to 30% of the total amount. Do not accept the settlement, if the amount is more than 50%. It is likely that the company will contact you later with a reduced negotiation amount. Once you reach an agreement, you can choose one of the alternatives to settle your debts, including lump-sum settlement, debt consolidation and developing a payment plan.
However, the credit card debt settlement process is not an easy one. It involves extensive documentation and several legal hassles. It is preferable to seek the assistance of a professional debt settlement company to handle the task. Debt settlement professionals have the experience to handle all the legal intricacies smoothly and can help you with the complicated paperwork. Moreover, they will help you reduce your credit card debt to the lowest possible amount.
Tips for Negotiating a Credit Card Debt Settlement
Credit card debt settlement is a process where you negotiate with your creditors to waive 40%-60% of your actual debt. You only pay the remaining portion of your total outstanding debt.
Here are few tips to negotiate a credit card debt settlement:
Call Your Credit Card Company: The first thing to do to negotiate your credit card debt is to call up your credit card company. Give a call to someone who is authorized to receive credit card debt settlement offers, such as a manager or somebody from the loss mitigation department, and talk about negotiations.
Keep your credit card statements and bills in front of you while discussing the matter with the concerned person. Explain your current financial situation and reasons for opting for credit debt settlement. Also, note down his name, extension number, and time and date of the call.
Debt Negotiation: Start negotiating with a low percentage, nearly 25% to 30% of the total amount. Do not accept the settlement, if the amount is more than 50%. It is likely that the company will contact you later with a reduced negotiation amount. Once you reach an agreement, you can choose one of the alternatives to settle your debts, including lump-sum settlement, debt consolidation and developing a payment plan.
However, the credit card debt settlement process is not an easy one. It involves extensive documentation and several legal hassles. It is preferable to seek the assistance of a professional debt settlement company to handle the task. Debt settlement professionals have the experience to handle all the legal intricacies smoothly and can help you with the complicated paperwork. Moreover, they will help you reduce your credit card debt to the lowest possible amount.
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