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Negotiating Credit Card Debt Yourself Can Save You Thousands

Posted by Internet Guru
July 27, 2009

Negotiating credit card debt is not a particularly mysterious science, but there are things to keep in mind if you are contemplating trying it yourself. There is a predictable sequence of events that follows once the process has been initiated, and you must be aware of the proper steps to take to ensure a successful outcome

Firstly, credit card companies won’t negotiate with you if you are current on your payments. They simply don’t have to; they are getting their payments. You are going to have to quit paying them. This will trigger an onslaught of phone calls and letters from your creditors. Knowing how to respond to these inquiries is crucial.

After a certain amount of time – usually 90 days or so, your creditors may start making settlement offers. These first offers will probably be in the 80% range. Not bad, but you can usually negotiate for a 50% settlement, sometimes as low as 20%.

Once you are able to reach a settlement that is agreeable to you and your creditor, you will have to come up with the funds to pay the lump sum. This can be found using tax refunds, family loans, or by saving the cash you would normally send to your creditor. Keep in mind though, once a settlement is reached, you normally have about a month at most to pay the total. Sometimes creditors will do a 3 month

installment, but don’t count on it.

Once the settlement is paid in full, your credit report will show; settled for less than the full amount. Not a perfect mark, but much better than a bankruptcy.

Thousands of people are finding that negotiating credit card debt is not as daunting as they at first thought, and that they can save a lot of cash doing it themselves.

Debt settlement is a way for you to potentially save thousands of dollars.
To see a side by side unbiased review of three highly popular do-it-yourself debt settlement programs, visit:  
<a target=”_new” target=”_blank” href=”http://www.diydebtsettlementcourses.com”>Do It Yourself Debt Settlement</a>.

John Phillips owns and operates www.diydebtsettlmentcourses.com

John Phillips is a writer, musician, and electronics tech.

Article Source:http://www.articlesbase.com/credit-articles/negotiating-credit-card-debt-yourself-can-save-you-thousands-1073806.html

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