Advertisements for debt settlement services are all over the Internet and television, promising to reduce or eliminate your debt.
The services provided through these companies can, of course, be completed by any consumer, but the process is lengthy and frustrating.
Although the steps to credit card debt negotiations are simple in and of themselves, if the consumer does not has the time or patience necessary to address the debt in detail it can quickly turn into a nightmare.
In essence, the price for settling outstanding debts, when handled by the consumer rather than an agency, is zero.
Then again, there are numerous small steps which must be addressed.
Missing just one of them can mean the difference between success and failure.
If you plan to attempt your own debt negotiations, there are a few steps you should follow.
Begin by gathering as much information as possible about your debt.
At minimum you will need to have the following items on hand: account number, amount currently due, date of last payment, amount of last payment, most recent billing statement, and contact information for the creditor.
In addition, if you have received a settlement offer in the mail, keep it handy.
You should plan to offer the creditor half of the outstanding balance.
For example, if you owe $500 on your XYZ credit account, plan to offer $250 as settlement in full of the debt.
Place a call to the creditor.
Take careful notes on the time, day, and name of the representative who takes the call.
If the account is past due by more than a few payments, do not expect a cordial conversation.
Individuals who attempt to complete this process on their own often find themselves verbally accosted during this call.
And, while the consumer can make numerous phone calls, avoiding the creditor's tirades is well worth the price one might pay to a settlement company.
The phone call should begin with this clear statement: "I am calling today in order to engage in debt settlement negotiations and to make a settlement agreement.
Can I please speak with someone who has the authority to make such a decision on the company's behalf?" Then, state the amount that you are willing to pay, which should be at least half of the original debt.
If they agree to this smaller amount, ask that the verbal agreement be placed in writing and a copy sent to you.
If an agreement is not reached, send the company a letter with your name, account number, and a clear settlement amount.
Ask for the company to sign and return a copy of the agreement if acceptable.
Regardless of whether or not you used a debt reduction company or if you attempt debt settlement on your own, you have accomplished your goal.
You are now free of a large portion of your debt, for free!