Christian Debt Recovery

Do It Yourself Debt Negotiation Tactics

October 28th, 2008 |

Author: Gavin

Credit Card Debt Negotiation – Reduce a Card Balance With These Debt Reduction Tactics

Credit card debt negotiation is the process of reducing and eliminating the debt that a consumer owes. The debt is reduced by removing interest, late fees, over limit charges and any other fees that the credit card company has tacked onto the original balance. The balance is then reduced further to a payment amount that the consumer can actually pay. The payment that is created for each creditor is based on the total amount that the consumer owes. So, each card ends up being reduced by 50% or more, so that it will fit into the repayment plan that was created. The repayment plan is comprised of all the bills and household expenses, as well as how much money is actually coming into the house hold. Credit card negotiation can be a long process, depending on how many creditors there are, how much is owed to each creditor and in total, as well as who the creditors are. Some creditors are easier to work with and settle with than others. So this can greatly affect how long the process will take. Usually it can 1 year to upwards of 3 years or more just depending on the individuals situation.

However, credit card negotiation can go a little faster when some different debt reduction tactics are used in the process.

Look for the debt that has already been sent a collection agency. Since this debt is usually sold to the agency many times for 50% of the original amount, contact the creditor willing to pay half of that amount back to them. If the creditor will not accept that, contact the collection agency. These companies almost always settle because they will make money either way and they want to payment now.
If the debt has been charged off by the creditor on your credit report, that debt is legally dead, you do not have to pay it. If the collection agency continues to contact you trying to collect, inform them that the debt was already charged of by the creditor and that it is no longer able to be collected on. Make sure to contact the credit bureau also to have the debt removed from the report or show paid in full.
Go through the remaining debt and remove all the fees, charges and interest from them so that they are only the original debt that is left. Begin negotiating to have this debt lowered to half of the original amount. It is what a credit card company will get for it when it is sold to a collection agency. Hold to your amount and do not give in. The fact that you are making an offer is an advantage to you.
If necessary let the creditor know that you will claim bankruptcy if the debt can not be settled. Bankruptcy means the creditor receives nothing from the consumer.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

About the Author

www.CreditCardDebtNegotiations.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.CreditCardDebtNegotiations.com

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