Debt Negotiation - Settling With Creditors For Half of What You Owe!

Cutting your debt buster in half by negotiating with your creditors is an option many people are unaware of. If you are late in your payments and can gain your hands on a lump of cash, settling with credit card companies for up to half of what you owe is a possibility.

I called both Citigroup and skedaddle to win out more but they were understandably very close-mouthed. The gentleman at scoot never quite answered my ask but acknowledged that a person may be able to negotiate a lower interest rate. The Payment Settlement Department at Citigroup conceded that you could convince them to sever off a chunk of your debt, but refused to give the particulars as to who would qualify.

So after sifting through online information and adding it to the minute I gleaned from the "attend" desks at the two credit card behemoths, I have reach up with the following scenarios:

If you ANTICIPATE having exertion making your payments, call the credit card company, declare them about your fears, and point out you have a advantageous payment history. Then ask them for a reduced APR. They would rather work with a valued customer and salvage their money than not come by it at all. And if you do not have a first-rate payment history?  So what?  Ask anyways; it never hurts.

If you ARE having misfortune making your payments and are over your head with debt from job loss, heath issues or any of the numerous other life events, more drastic measures may be taken.

1)  Call you credit card company and swear the service representative you want to negotiate a settlement for your debt. Don't secure into details at this stage; it's above their pay scale.

2)  Ask for a credit manager and recount him or her the same and ask what the next step in the process is. It will probably be contacting the Payment Settlement Department (or its equivalent) .

All further correspondence should be in writing and sent via certified mail.
Keep a copy for your records.

3)  In writing, briefly clarify your status and that you are unable to effect payments for the foreseeable future. Then select 40% off your balance and offer to pay off the rest. attend and forth will follow, but you should raze up with a gargantuan allotment taken out of what you owe.

4)  If you do not have a chunk of cash, negotiate the same but with the intent of lowering your monthly payments. You can also suggest that obvious charges be waived- slow fees, ATM fees, etc.

5)  Whatever agreement is finally reached, execute certain to accumulate it in writing.

Be aware that settling your debt with a credit company MAY adversely affect your credit derive. And this is almost always a terrible thing. But if you have reached the stage where debt settlement is an option, your credit rating has probably already been under assault.

With that said, your credit net will probably only plunge 20 to 50 points and that dip should recover in a couple of years. In the long speed, your credit glean will most likely be positively impacted by negotiating a settlement. That crippling debt is gone along with the equally crippling psychological burden that debt cost.

hold in mind:

· Conduct most of your business in writing · withhold all correspondence from and to you · Write down names of all authorities you yelp or write to · gaze out expert advice but be careful of scams and deals to excellent to be correct. Most banks offer free debt counseling for members. You could also contact the Consumer Credit Counseling Service (CCCS)  at (800) 388-2227 · And most importantly...

While it may not stare it, you actually have worthy leverage. They want their money and the only sticks they have are harassment and lowering your credit regain. That debt will approach off your glean in seven years or less anyways, so they want to procure as soon as possible. Bottom line is because you have something they want, you are negotiating from a plot of power.

Don't let the bullies catch!