How to Settle a Credit Card Debt

If you are struggling to get off your credit card debts, you always have the option to settle the dues by paying out a decided lump sum amount. However, the credit card settlement is not a free ride as it has a number of burdens along with. You definitely get to settle the credit card debt at a reasonably discounted amount, but it doesn’t get over there. How to settle credit card debt is a question that you might want to get answers to.

Before getting your credit card dues settled, you need to be mentally prepared for the emotional pressure that you might have to undergo. Firstly, negotiating with the settlers could take a toll on you as they would not agree to your demands at one go. Once the settlement amount is decided upon, the financial burden of getting your credit score back on track in the credit report with the Credit Bureau becomes a task. It is very important that you call up the settler exactly 120 days from the day you missed credit card payment.

The following steps if followed can be of great help in order to settle your credit card debt is a correct and efficient manner.

  • If you want to settle your credit card debt, you should stop making the card payments. If you continue to make the payments on time, the credit card company would have no reason to bring up a settlement of debt. These companies generally decide to settle when they feel that it is always better to get something rather than nothing.
  • At some point of time, a collection agency might take up your account and you might get calls threatening to take over your car, property, or even threats to sue you. You need to take burden of this as no agency would go to the extent of filing a lawsuit against you for the dues.
  • Make an offer to the credit card company or the agency in order to settle the debts. There have been cases were the settlements have been done at a very low rate. Make sure that your offer is nothing more than 25% of the debt.
  • It is not necessary that the company accepts your offer in the first attempt. You may have to try hard to convince them or even settle at a neutral rate that they offer.
  • Always keep the bankruptcy thing in mind while negotiating. Tell the company that they may not receive a single penny if you declare that you are bankrupt.
  • Don’t panic and be patient. Do not rush in to file bankruptcy. The more you wait the chances of the settlement amount tends to decrease.
  • The most important thing while settling your credit card debt is that all the deals should be taken in written and signed by the person from the company who is negotiating. Only after you receive a hard copy of the settlement agreement, you make the payment.

The most important thing while getting a settlement of your credit card debts done is to keep a cool head and to be patient. If you would be negotiating with a heavy mind, the credit card companies could get over you and you might end up settling at a higher rate set by them. Following certain steps during the settlement process can help you negotiate and settle at the least rate possible.


Related Content:

  1. How to Get Credit Card
  2. How to Calculate Credit Card Interest
  3. How to Prevent Credit Card Fraud
  4. How to be Debt Free
  5. How to Repair Credit Rating

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