The article gives an analysis of Credit Card Debt Settlement. Any debt can become a big financial problem once you are into it and the only solution is to come out of it as early as possible. A credit card debt is also one such situation of concern. One way to come out of it is to opt for credit card debt settlement to save your self from bankruptcy. Here you settle your credit card debt by paying much lesser than the amount you owe. However, in order to do so, you should bear certain things in mind. Let us consider the key points in credit card debt settlement.
Decide how to settle credit card debt
Generally, you can settle your credit card debt either by your own or through one of the credit card debt settlement firms. It is obvious that the credit card debt settlement firm would be an expensive option than doing it yourself. And since you are already on the verge of bankruptcy, you can save by being proactive in negotiating with the credit card company directly, without approaching a third party to settle your debts. However, the choice is yours as to what method you will choose for settling your credit card debts.
Consider the payment amount
One of the key considerations in settling your credit card debt is to make a decision on the amount you can pay. Generally, in this kind of debt payment, the settlement amount can vary anywhere from 15-50% of the remaining balance. The amount differs on factors such as the norms followed by the creditor as well as the duration of the debt. You should also negotiate at your best so as to pay the minimum amount to the creditors.
Find out the mode of payment
You should decide whether you wish to go for part payment, where you can pay over a period of time or a lump sum payment. Most creditors would want you to go for a lump sum payment or agree to settle the debt in one or two installments at the most. You should make at least a part of the payment to avoid confusion of course after much negotiation.
Try to do a good negotiating job
In credit card debt settlement, negotiation is the keyword. Therefore, do not forget to negotiate with your creditor and while doing so, quote a much lower amount than what you can actually pay up. Before you negotiate, always call the manager of the concerned department, as the customer care representatives are not authorized to handle a serious issue like debt settlement. Make sure note down the name and extension number of the manager with whom you have spoken, along with the date and time.
Finalizing your settlement
Once the negotiation process is complete and you are aware how much to pay, be ready for the final debt settlement. Be very careful that all the terms and agreements of the final settlement process should be documented. you can appoint a lawyer to help you with the final deal and also make it a point that both the parties have signed on the paper stating the settlement amount and that the process has been completed.