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.If you have the skills and talents to compete with these professionals when it comes to negotiation, communication and documentation then give it a shot. After all, if a nurse with little background in taxation and the law can single-handedly take on the Internal Revenue Service and win, then so can you where debt relief is concerned.
There are certain things, however, that you must consider when settling credit card debts as a personal endeavor.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 can try to negotiate a lower principal amount on your credit card bills as soon as you feel that making the minimum monthly payment is not going to be possible or if you feel that the debts are not going to be paid due to other fiscal priorities/emergencies.You should bear in mind that the debt relief process cannot be used unless your accounts are sufficiently 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 avoid this from happening, the credit card company will be more than willing to settle your debts through negotiation.If the creditors get half of what you owe, thats much better than the 5% they would’ve gotten from the third party collection agencies.
Document Everything
The days of verbal agreements holding any value are long gone and especially when it comes to credit card debt settlement. After all, it will be your word against the word of the collection agents and you should know by now that nobody wins in such a case.
The other option is that you maintain excellent written records of all the matters related to the settlement and negotiation process with your creditors.Send out the letters with accurate and comprehensive information to clearly specified addresses/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. Take note of the time and date, the persons you spoke to, their contact number and the general flow of the conversation.
Use Certified Mail
When you have reached a settlement, always send your payment through certified mail. 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.
Dont forget the specific strategies that you need to use to settle the debt by yourself.Remember the three tips here and you will do just fine in this process.
There are steps that you can carry out. For more ideas about how can I improve my credit score you should read our articles about what you can do when you cant pay credit card debt
Now, when you are wondering -how can I improve my credit score? – you will know the answer(s)..
Entries (RSS)