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. Well, if you have the talents and abilities to rival those of the professionals especially in the areas of communication, negotiation and documentation, then go on right ahead. 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.
You must ensure that your accounts are considerably delinquent
You might want to negotiate for lower principal amounts on your credit card bills as soon as you cannot pay the minimum monthly payment required or as soon as you feel that you cannot pay your debts due to other financial obligations.You should bear in mind that the debt relief process cannot be used unless your accounts are sufficiently delinquent.
How deep should you be?Delinquent credit card accounts are written off by creditors once the 180+ days windows has completed.The writeoff causes the account to drop in value significantly and third parties usually buy these for real cheap – sometimes around 4-6% of the original amount.
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.
Maintain Detailed and Descriptive Documentation
In this day and age, verbal agreements hold very little merit when it comes to settling credit card debts through the debt relief process.It is your word against the word of the collection agency so there isn’t a clearcut winner in this scenario.
The other option is that you maintain excellent written records of all the matters related to the settlement and negotiation process with your creditors. Always send out letters with complete information to the proper addresses and addressees. Then, file these letters and other forms of communication in a binder for easy access.
If you must make a conversation over the phone, keep descriptive records of it.Document the date, time, the names of the people you spoke with, the contact numbers and the details of the conversation.
Make It Certified Mail
Once the settlement has been reached, send your payment through certified mail or any mail that can be tracked.Send the check along with a memo clarifying that the check is the full payment along with a copy of the settlement that was reached. This way, complete documentation is achieved.
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 how to avoid a lawsuit over credit card debt