subject: Negotiating Credit Card Debt – Should You Do It Yourself Or Use A Professional Company? [print this page] Credit card debt is a burden, which goes on increasing with time. The ill consequences of debt don't just reflect on the persons credit report, but reflect on the economy as well. In such circumstances, getting rid of debt is the best bet an individual can opt for. Debt settlement negotiation, wherein the debtor offers the creditor a deal in which he agrees to pay a particular sum, less than the total credit amount, in lieu of his debt being closed, has become an important tool of debt settlement. Being aware of how to negotiate credit card debt efficiently doesn't only help you to get rid of debt, but also helps you in improving your credit report.
Negotiating Credit Card Debt Settlement
At times even 'doing nothing' or being unemployed can save you from debt, but that is a temporary relief as the creditor will, by all means, approach you for loan repayment on a later date. In the meanwhile, you will have to come up with some better option for debt settlement. There is no shortcut to debt settlement. It is a planned exercise which has to be executed step by step. It may be a bit slow, but it does work exceptionally well. You will have to cut down on spending and change your lifestyle to suit your needs. Trying to get a second job will be an advantage as it will act as an additional source of income. You can make a list of outstanding debts, and start paying the smallest debts first, then moving on in the hierarchy. This will boost your confidence and you will be done with debt repayment in a short period of time. In order to do this, you will have to get in touch with the credit card company and assure them about your intentions. Debt settlement depends on negotiation to a great extent. Read more on how to negotiate with credit card companies.
How to Negotiate Credit Card Debt?
Credit card debt negotiation is not as difficult as it seems. People often tend to get intimidated by frequent calls and notices from the credit card companies asking them to pay their outstanding debt. If you are one of them, first thing you need to understand is that debt negotiation is not just beneficial for the debtor, but for the credit card companies as well. The companies know that through debt negotiation, they can at least get a part of the outstanding amount, if not the entire amount. More importantly, if the debtor files for bankruptcy, the chances of getting that 'part' of the payment also diminishes. However, this doesn't mean that the company will readily agree to negotiate the credit card debt. This where your negotiation skills will come into picture.
Counseling Service to Negotiate Credit Card Debt
You can take help of some renowned credit counseling services to deal with the harassment done by the creditor. The counseling company will hold talks with the creditor, in person as well as through legal means, on your behalf. This will at least curb the harassing by the debt collection agencies and pave way for negotiating credit card debt settlement. These debt counselors are well versed with legal and tactful means of debt settlement, and thus can give you the best deal possible. However, you will have to pay for availing their services. The payment may be a stipulated amount as fees or a part of the sum let-off by the creditor. The brighter side of debt counseling, however, is that the creditor may agree to accept a part of the payment instead of full outstanding amount or give you some time to arrange funds to make one time payment in full. In the mean time, you may also opt for a debt consolidation loan. A debt consolidation loan is only feasible, if you have some assets which you can use as a security for the repayment of this loan. Borrowing money for repayment of loan is not a healthy option, considering you will still owe money to the second creditor, after repaying the loan taken from first creditor. Read more on credit card debt consolidation.
Negotiate Credit Card Debt Yourself
When it comes to credit card debt settlement, the best bet is negotiating credit card debt yourself. Although many consultants pitch for seeking help from a legitimate professional, there is not much these professionals can do, other then giving you some briefings (such as spending less) and indulging in talks with the credit card company on your behalf. Both of these things can be done by you on your own, but when they are done by the consultants you will either have to pay them their high fees or share a part of the sum, which the credit card companies let-off with them. Some presence of mind, basic negotiation skills, and awareness of how to negotiate credit card debt mentioned above can help you achieving your target in a short time.
Negotiating Credit Card Debt Should You Do It Yourself Or Use A Professional Company?
