Imagine a situation, You have utilized all the credit limit on all of your credit cards. you are paying the minimum payment on each of the credit card bill you are getting. Suddenly something nasty happens. You fall sick, you loose you job or your business go broke.. anything that leaves you with little or no income at all. So, It is impossible for you to pay the debt you owe on your credit cards. Well, don’t worry. you don’t have to pay.

How it is better than bankruptcy?

You might be thinking that I am suggesting bankruptcy. No, I am not. I am suggesting that you should negotiate a credit card debt settlement. You have three options.

1. Negotiate the debt settlement yourself
2. Hire a Lawyer to settle with credit card companies for you
3. Find a Debt relief company to represent you

Why Would They Accept Less?

Why would credit card companies accept a payment less that what they owe? well, its simple. you threat them with bankruptcy. If you go bankrupt. they are the last one in the line to get anything from your assets if any are left over from your other obligations i.e. home loan etc. Credit Card Companies are smart, they will settle for anything. may be 40 cent to a dollar or less. That’s half your debt erased.

What it takes to Erase the debt?

If you got plenty of time (which is only thing you have when you are jobless) and patience. you should do your credit card debt settlement yourself. But remember it is very hard. it can take months and at times you might get very frustrated. Other skills required to negotiate a debt settlement include good telephone manners, a serious and persistant attitude and ability to absorb a great deal of ******.  Its better that you let a lawyer handle it. but that will cost you. so its your choice.

How to improve your chances of Getting Debt Settlement

You can improve the chances of getting a better deal in credit card debt settlement when you have a chunk of money you can offer to pay immediatly. I have seen people getting away with only having to pay one third of what they owe to a credit card company.

In Next few articles , we will discuss what to expect and will offer you some advice on how to handle different situations that might arise during a credit card debt settlement process.

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