• Use credit card settlement procedures to reduce your debt and save money.scissors and credit card cut in two image by Warren Millar from Fotolia.com
  
  Many people today are struggling with the burden of overwhelming credit card debt. Making minimum payments can often keep your bill collectors at bay, but no substantial dent is made in your debt while the interest continues to add up. Numerous Americans are turning to bill consolidation and credit card debt settlement procedures to help alleviate financial strain and lower the payments on overdue credit cards.
  
  

Assess Your Debt

• Before trying to arrange a settlement, examine all of your credit card statements to establish just how much debt you are in. In many cases, past due credit card balances are loaded with interest, late fees, over-the-limit charges and other service fees. In most cases, you can convince your creditors to reduce--or even eliminate--these charges before negotiating your settlement.
  
  

Choose a Settlement Company

• You can go about negotiating with your creditors in a "do-it-yourself" fashion, but this can take a considerable amount of time and frustration, particularly if you have several credit accounts to settle. For more effective results, obtain the services of a professional debt settlement or consolidation company. For a reasonable fee, you can have experienced professionals do the footwork for you, providing lower payments and one convenient place to pay.
  
  

Negotiations

• Whether you choose a debt settlement company or take on your creditors yourself, once you have assessed your debts vs. fees and interest you--or your representative--will begin negotiating with your debtors. The most effective method is to call the credit card companies directly as letters are often ignored. Be sure you are speaking with a credit manager or someone who has the authority to negotiate settlements. Typical customer service agents cannot make such decisions. In this step, decisions are made regarding how much of your debt--and additional fees--will be forgiven.
  
  

Payment Plan

• In most credit card settlement cases, payments are required in one lump sum after all waivers and reductions have been applied. However, it is often possible to work out a short-term payment plan for debts of a larger magnitude. Plans can range anywhere from three to six months or up to a period of one to four years in special debt management situations.