Credit Card Debt Negotiation
When faced with extreme financial hardship, making it almost impossible to pay the minimum payments due on your credit cards, you may want to try credit card debt negotiation.
But before you jump in, you need to understand a few things:
- Credit card companies, and especially collection agencies, DO NOT CARE about you or your financial circumstances! Don’t waste time trying to explain.
- If your account has not been charged off, you are probably not going to get a very good offer or any offer at all. Creditors usually wait 120-180 days before giving up and charging off an account.
- Once the account has been charged off, it most likely will be assigned to a collection agency. The agency will begin to call (incessantly) in order to get as much money from you as possible.
- Collection agencies can make agreements (within their client’s guidelines) to settle accounts for less than the full amount.
- But BE AWARE! The collection agent has been trained to get as much money out of you as possible! They will use all kinds of tactics (many that violate the FDCPA) in order to intimidate you.
- You may be told that they never settle for less than the full amount, but this is not true.
- They may say that they settlement agreement must be in a lump sum and usually by the end of the month. This is not true. Term settlements can be arranged.
- If you agree to a settlement, GET IT IN WRITING! Do not be tricked into a verbal agreement.
- Keep records of payment. If there are any discrepancies or disputes in the future, you must have proof.
Credit card debt settlement is not easy! It takes many hours and precise follow up to successfully negotiate with your creditors, so you may want to consider seeking the help of a Debt Settlement agency.
Photo By SqueakyMarmot