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.Not too long ago, a nurse with a little bit of groundwork in tax laws took on the IRS single-handedly then so can you in the case of debt relief.
Keep these points in mind when you are settling credit card debt on your own.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.
Just how delinquent? Well, delinquent credit card accounts are written off as an accounting procedure once these have reached 180-plus days in the ageing method.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 prevent this from taking place, the credit card company will be eager to settle the debt through a negotiation process. After all, if they can collect 50 percent of the total debt, it is still way better than the 5 percent they will get from third parties.
Keep Descriptive And Detailed Documentation
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.
Instead, you should maintain detailed and descriptive records of everything pertaining to the negotiation and settlement of your credit card loans. 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. 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. This way, complete documentation is achieved.
Of course, there are specific steps towards settling your credit card debts on your own. Just remember these three tips and you should be alright during the entire process.
These are some specific steps that you can take. 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
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