Ways to Settle Debt from Credit Cards
It is possible to reduce your debt and settle the debt incurred on credit cards on your own so that you can also save some money. There are a few things of which you need to be aware of before you take the first step of calling your creditors so that you can come to an agreement on the settlement of the debts.
Negotiating credit card debt is only possible when such debts are unsecured like in the case of medical bills, student loans, store cards or credit cards. It is also necessary to be aware of whether such negotiations are directly with the company that has issued you the credit card or whether they have already assigned that task to a agency that is into debt collection.
Settling Credit Card Debt With the Company Directly
There are times when the persons calling you up repeatedly to make payment are from the staff concerned with collections in the credit card company and it is best that you approach them directly so that you can settle the debt.
There is a better chance of their being willing to discuss such debt settlement if your account is overdue for less than 90 days. Once you have reached this limit it is best to get in touch with the credit card company and suggest payment of a sum of money that is a quarter or half of the sum that is owed, as payment in full.
Staff in collections department of such companies are trained to get you to commit a payment while they are talking to you on the phone. They will also show very little interest in any debt settlement offer that you make. It is best to be patient when you are talking while at the same time making it very clear that your present financial situation does not permit you to make the full payment.
Credit card companies will far better receive some amount of money from you than be faced with the prospect of receiving nothing in case you make a filing for bankruptcy.