A lot of people end up owing a lot more money than they can realistically pay back. If this sounds like you, it's likely that you've looked into your options and decided that negotiating with your creditors for lower credit card balance settlements may be the best way to get out of debt.
Now that you've decided to try to negotiate with your creditors, you might be wondering what steps to take and if you need a debt settlement company to do the negotiating for you. Well, that depends. Some people can negotiate with their creditors to get lower settlements, while others are too scared to deal with any kind of conflict. About half of the people I talk to are willing and able to negotiate on their own, according to what I've seen and heard.
There's no reason you can't negotiate on your own if you can stay calm and, at the very least, sound confident in the face of stress, badgering, harassment, and multiple phone calls from your creditors, and if you're patient enough to take the time to learn about the process of debt settlement.
If you decide to settle your debts on your own, you should know that the process can take a few months. During this time, your creditors won't stop calling you and trying to get you to agree to a payment plan. But don't forget that you decided to negotiate with your creditors because you could no longer pay your monthly bills. Even if your creditors are willing to lower your monthly payments and/or interest rates, you will still have to make a lot of monthly payments for a few years. So, when you're talking to your creditors, stand your ground and make it clear that you can't agree to a long-term payment plan.
Think carefully about the "make-up" of the credit industry if you need convincing to stay on solid ground when talking to your creditors. If you've paid your bills on time every month for several years and then ran into trouble, your creditors wouldn't care. You could call or write to these companies and beg for a break on your interest or payments, but they wouldn't give in. If you don't pay on time, they won't offer you a lower interest rate or payment until you're behind. This should be enough to help you stand your ground and say that you will not agree to their new payment terms under any circumstances. Even though you asked for help and begged for it, they weren't willing to help. This refusal to work together has led many people to file for bankruptcy.
After a few months and many talks with your creditors, you'll reach a negotiated settlement that everyone is happy with. Before sending money to your creditor, you should get a settlement letter that spells out the terms of the settlement that were agreed upon over the phone. This is very important. Remember, if it's not in writing, it doesn't exist, so don't pay a dime until you have a settlement letter with a settlement amount, a deadline, and the correct account number.
To settle debts well, you need to know about it and learn about it. Take your time and use the many resources that are there to help you. Even if you have to spend a few hundred dollars on materials that will teach you and give you information, you'll still be several thousand dollars ahead. You won't be sorry you made the choice to get out of debt.
