Give investment tips and advice.

How to Settle Credit Card Debt Yourself

How to Settle Credit Card Debt Yourself

Did you know that it is very much possible to settle credit card debt yourself? Don't be very surprised, because this is not a commonly known fact. But not to worry. This article will explain to you how to settle your credit card debt on your own, without any help from credit counselors.
Ujwal Deshmukh
If you believe in tackling your problems by yourself before they get out of hand, then you will definitely try settling credit card debt yourself! Of course, no one is going to come to your place and do the task for you! The only person that can help you come out of this kind of trouble is you, yourself! Many people think that it is very difficult and almost impossible to settle a credit card debt by themselves. I partially agree to this belief. Yes, settling the debt yourself might be a bit difficult, as neither you are a trained professional nor are you properly aware of the credit card debt negotiation tips! However, if you say it is impossible, let me tell you that there is no reason why can't you settle credit card debt yourself. Of course you can, though it is not very simple and will take some sincere effort! Here, to help you in just that, we will focus on the difficulty of settling credit card debt yourself.

Misconceptions Regarding Credit Card Debt Settlement

Before we go into the tips and process of settling a credit card debt, there are a few misconceptions that we need to be clear about. With these points clear in mind, settling a debt would become much easier.
  • The first thing that we need to understand is that there should be a strong and valid reason for a debt settlement. If you are well off financially, then no company will compromise on your payments. Reasons like medical issues, job loss, etc., will put you in a position to try to reach some settlement.
  • Not all credit companies have the exact set of rules. Different companies are more flexible as compared to each other, than we think. Just because someone else did not get a good deal with his creditor, does not mean the same will happen with you. Deal with your creditor without any preconceived notions.
  • Most people assume that a debt settlement, besides solving their immediate debt payment issues, will also prevent their credit rating from taking a beating. This is not the case. It dents your credit rating to the same extent as bankruptcy would, so keep that in mind.
  • Everyone believes that bankruptcy or debt settlement are the only two options available in times of crisis. But the truth is that there are other avenues too. If you had a medical issue, and henceforth will be getting your finances back on track, the creditor may allow you to repay smaller amounts, or even make no payments for a certain amount of time. The same is the case if you didn't have a job for sometime, but have one now.
Soft Skills Required to Settle Credit Card Debt

Actually, you might already be possessing these soft skills, when it comes to settling your debt, and they just need to be put in use. Here are some of the soft skills needed to settle a credit card debt yourself.
  • Initiative: Most people lack this. Taking the initiative is really not that simple though. However, if you are going to benefit from it, what is the harm, right? Many people do not like to discuss their debts, but this attitude won't help for too long! Someday, when things go out of control, you will have to pick up the telephone and call up the credit card company, asking for a debt settlement.
  • Negotiating Power: Understood that negotiating power is not a common quality. But why not try it, at least for your betterment? At the most, if you fail, you always have credit counseling to help you out! But who knows, if you succeed in negotiating, you would be able to settle the credit card debt yourself without help from credit counselors or professional debt negotiators.
  • Talk Up: Most people are so desperate that they would surrender for anything that the company offers. Well, there is no harm if you are benefiting from it. However, if you are not sure about the deal, turn it down, but with politeness. Neither be too defensive, nor be too aggressive!
What to Do to Settle Credit Card Debt

You need to be prepared to settle credit card debt yourself, to make it happen! Here are some tasks before deciding to negotiate for a settlement credit card debt.

Mobilize'em Up!
This is the first step in settling credit card debt yourself. If you are amongst people who own a large empire of credit cards and accounts, then you have to mobilize information pertaining to all of them, including the contact numbers of the respective financial institutions. You need to find out whether your account is eligible for a debt settlement, as, if you have secured debt, then settlement would not be possible. However, for unsecured debts, you are well qualified to move ahead with negotiations!

Determine Your Fiscal Health!
Whatever negotiations you are thinking of, you need to analyze and determine your financial position! Do you have enough monetary resources to pay off the negotiated debt, or are you on the verge of bankruptcy? Ensure that you consider your monthly household expenses and other expenditures before planning the payable amount. Decide a favorable percentage over the amount of debt you are liable to pay the company. But be sure to have that much money with you to pay off.

Negotiating Techniques
You can now move on to negotiate the debt. You have several options with you in this regard. Some of them include, debt consolidation, reducing the interest rate, cutting on extra charges applied for late payments, ATMs, etc. You can also go in for a lump sum amount payment or redesign your payment plan.

Settle It Once and For All!
Quite possible that the company might not agree to any of your settlement proposals. In such a case, you need to initiate a step ahead and let the company do the same! If you say 20 percent, the company might say 30 percent. You can therefore reach a consensus and convince the company to accept 25 percent, and just settle the debt once and for all. It is a bit difficult, however, you need to do it any case. If you are dealing with someone who simply won't listen, then ask to speak to a higher authority, and get your case handled by him or her.

Document the Deal!
This goes without saying! Certainly, deals or transactions that have a financial significance cannot be done verbally. All your agreements and negotiation deals should be properly documented, and you also need to preserve them carefully, as the officials of the credit card company might ask for the settlement proof, anytime! Also, make a note of all the conversations you had, and with which particular representative, and when, right from the start of the negotiations. These will come in handy in case there are any issues later on.

The procedure to settle credit card debt yourself does not stop by negotiating and settlement. From your side, you need to make regular payments, or the lump sum agreed upon, and once the debt gets settled, you should insist for a settlement letter showing a nil debt balance in your account. This is where the debt settlement process gets completed, and only then you can call yourself debt free! I hope the above discussion has helped you in understanding how to settle your debt yourself. So waste no more time and get on with the process mentioned above. Best of Luck!