Settling Credit Card Debt on Your Own
Are you the person that feels you need to be in control of every step in the debt settlement process? With so many debt relief options out there, settling credit card debt on your own could be one of the options. However, not everyone can do it.
If you are very organized, detail-oriented and understand that tackling your debt by yourself can be time consuming, but may save you some money, then you should go for it on your own. However, if you are not good at negotiating debt with your creditors or writing strong letters to them or debt collection agencies, then your best option is to hire a highly regarded debt settlement company to help you out.
The major advantage of settling your own debt is that you can keep your personal financial situation to yourself. You don’t have to disclose what debts you owe, how much money you’ve borrowed, or any of your hardship that result in your debt problems.
On the other hand, the downside is you might have limit knowledge about debt settlement or any experience on negotiating debt with your creditors. This is the risk you have to consider before you start to jump into this option.
Tips on Settling Credit Card Debt
1.) Your creditor may not always want to negotiate debt with you, if they don’t receive some money from you first. They might ask for as much as 50% of your overall debt balance up front.
2.) Don’t quickly agree to any payment plan your creditor offers you. Sometimes the offer may look very attractive to you, but you need to be realistic about your current financial situation. You might not be able to afford it at all. You need to tell your creditor what you are willing to pay, and if they demand more, you will probably have to file for bankruptcy.
3.) During the negotiation, try to see how far the creditor is willing to go. If your creditor offers you a 3-month-no-interest payment plan, ask for 9 months. Always seek for the best term for yourself and be aware of how much room you have to work with them in your situation.
4.) Ask for “Paid in Full” status. Most of the time, creditors would settle for less on the dollar you owe. After all, they can at least get something back. With that said, you can be expecting to pay less for a lump-sum payment. Besides the low settlement payment, you should always insist that the debt to be shown as “paid in full “on your credit report before you sign the final debt settlement agreement with your creditor.
Settling credit card debt on your own is one of the debt relief options that you should consider, if you have enough time, the knowledge and the patience, it may be the right choice to help you get out of debt sooner.