Negotiating Your Own Credit Card Debt
In Credit Repair of CreditGuru (June 24, 2009 12:01 pm)
Negotiating credit card debt yourself can be a challenge, but it can be done. If debt settlement is the debt relief option you have chosen, negotiating the debt yourself is a wise decision. Find out everything you can about credit card debt settlement and how it can affect you.
You should get your infiormation independently, as information gotten through a debt settlement agency tends to be biased. Persuading you to see the outcome their way is the goal of a debt settlement company. They will also charge you a fee that will most likely be a percentage of the amount of money they saved you on your credit card balance.
The best way to approach debt settlement is to have the money available at the time of negotiation. Now I realize this is much easier said than done in many cases, but doing this will give you a lot more bargaining power. Address your accounts one at a time, and if possible keep making minimum payments (unless they are already charged off) on the rest of your accounts. Try to keep them as current as possible, until you have the money to settle these accounts. It is becoming more common for lenders to sue for unpaid credit card debts that have been ignored.
Negotiating over the phone is best and then follow up with an email or a letter with the agred upon terms of the settelement. Many individuals include in their terms that acceptance of the settlement includes removal of all negative credit history and they also include a statement saying the terms of the loan were satisfied. I don’t see this happening, but this is no harm in trying. Unless your credit history was actually reported incorrectly, most credit card companies will not revise it.
It is important to know that your credit will be affected negatively and any amount of debt that us forgiven will be taxed because it is considered income. There is a lot to consider when you are contemplating do it yourself debt negotiation.
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