So, you have decided that settling your credit card debts on your own is the better path instead of hiring a debt relief company for the purpose. Well, if you have the talents and abilities to rival those of the professionals especially in the areas of communication, negotiation and documentation, then go on right ahead.Not too long ago, a nurse with a little bit of groundwork in tax laws took on the IRS single-handedly then so can you in the case of debt relief.
Keep these points in mind when you are settling credit card debt on your own.These top 3 strategies will make sure that you are closer to dealing with those credit card companies head-on.
Make Sure that Your Accounts Are Significantly Delinquent
You might want to negotiate for lower principal amounts on your credit card bills as soon as you cannot pay the minimum monthly payment required or as soon as you feel that you cannot pay your debts due to other financial obligations. Keep in mind, however, that the debt relief process cannot be availed of until and unless your credit card accounts are significantly delinquent.
How deep should you be? Well, delinquent credit card accounts are written off as an accounting procedure once these have reached 180-plus days in the ageing method. The write-off subsequently devalues the account so much so that third parties can purchase it for as little as 5 percent of its face value.
To prevent this from taking place, the credit card company will be eager to settle the debt through a negotiation process. After all, if they can collect 50 percent of the total debt, it is still way better than the 5 percent they will get from third parties.
Detailed Documentation
The days of verbal agreements holding any value are long gone and especially when it comes to credit card debt settlement.It is your word against the word of the collection agency so there isn’t a clearcut winner in this scenario.
The other option is that you maintain excellent written records of all the matters related to the settlement and negotiation process with your creditors. Always send out letters with complete information to the proper addresses and addressees.After that, file the letters and other forms of communication in a binder that is easily accessible.
If you must make a conversation over the phone, keep descriptive records of it.Document the date, time, the names of the people you spoke with, the contact numbers and the details of the conversation.
Use Mail That Can Be Tracked
Once the settlement has been reached, send your payment through certified mail or any mail that can be tracked. Send the check together with a memo saying that said check is for full payment, if indeed it is, along with a copy of the agreed settlement.Now, you will have pretty good documentation.
Of course, there are specific steps towards settling your credit card debts on your own.Remember the three tips here and you will do just fine in this process.
These are some specific steps that you can take. For more tips on how to fix a bad credit report you should read our articles about how to avoid a lawsuit over credit card debt
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