subject: Credit Card Debt Bailout - 3 Steps to Reduce 50% of Your Outstanding Balances [print this page] Credit Card Debt Bailout - 3 Steps to Reduce 50% of Your Outstanding Balances
During economy crisis, many Americans are struggling hard to pay off their credit card debts. They find it really hard to get rid of their outstanding balances. In fact, what can be done to dig themselves out from the hardship? In my personal view, I would strongly recommend debt settlement. Do you know that you will be able to cut your debt by 50% through debt negotiation with the creditors?
Let me share with you 3 simple steps to reduce your debt:
Step 1: Get yourself prepared before contacting your creditor
You are reminded not to call up your creditor in a rush. It is important for you to gather all the detailed information about your total debt before calling up the credit department. At the same time, you need to consider your reason for not being able to pay back your debt. In normal circumstances, the credit card companies always ask their debtors why they need debt relief. Hence, you need to make sure that you have a good reason to convince your creditor to accept your settlement offer.
Step 2: Start contacting your creditor
It is important for you to convey your message clearly to your creditors that you want to settle your debt. If you are currently unemployed or divorced, you should tell your creditor frankly. You are advised to talk to the officer in charge in a sincere manner that you wish to settle your debt. You are reminded to propose a settlement amount which you can afford to pay. At the same time, you should request your creditor to remove all the negative items from your credit file.
Step 3: Bargain with your creditor to reduce your total outstanding balances
Frankly speaking, you may not be able to get the approval from your creditor at the initial stage. You are suggested to tell the creditor that you plan to file for bankruptcy if your credit card debt isn't cut in half. The success rate is quite high if you "threaten" your creditor in such a way.
Start developing a debt reduction plan from today onwards by following the suggested steps above. If you really don't have confidence to cut your total debt by 50%, you are advised to contact the Association of Settlement Companies to look for a reputable debt settlement company to assist you. In general, the professional debt relief companies are able to negotiate with the creditors to reduce more debt as they are more experienced.
