I Cannot Pay My Credit Card Bills – What Are My Options

So, you have decided that settling your credit card debts on your own is the better path instead of hiring a debt relief company for the purpose. Well, if you have the talents and abilities to rival those of the professionals especially in the areas of communication, negotiation and documentation, then go on right ahead. After all, if a nurse with little background in taxation and the law can single-handedly take on the Internal Revenue Service and win, then so can you where debt relief is concerned.

There are certain things, however, that you must consider when settling credit card debts as a personal endeavor.These top 3 strategies will make sure that you are closer to dealing with those credit card companies head-on.

You must ensure that your accounts are considerably delinquent

You can try to negotiate a lower principal amount on your credit card bills as soon as you feel that making the minimum monthly payment is not going to be possible or if you feel that the debts are not going to be paid due to other fiscal priorities/emergencies. Keep in mind, however, that the debt relief process cannot be availed of until and unless your credit card accounts are significantly delinquent.

Just how delinquent?Delinquent credit card accounts are written off by creditors once the 180+ days windows has completed.The writeoff causes the account to drop in value significantly and third parties usually buy these for real cheap – sometimes around 4-6% of the original amount.

To avoid this from happening, the credit card company will be more than willing to settle your debts through negotiation.If the creditors get half of what you owe, thats much better than the 5% they would’ve gotten from the third party collection agencies.

Keep Descriptive And Detailed Documentation

In this day and age, verbal agreements hold very little merit when it comes to settling credit card debts through the debt relief process. After all, it will be your word against the word of the collection agents and you should know by now that nobody wins in such a case.

Instead, you should maintain detailed and descriptive records of everything pertaining to the negotiation and settlement of your credit card loans.Send out the letters with accurate and comprehensive information to clearly specified addresses/addressees.After that, file the letters and other forms of communication in a binder that is easily accessible.

If you do have a conversation on the phone, record the details.Document the date, time, the names of the people you spoke with, the contact numbers and the details of the conversation.

Use Mail That Can Be Tracked

Once the settlement has been reached, send your payment through certified mail or any mail that can be tracked. Send the check together with a memo saying that said check is for full payment, if indeed it is, along with a copy of the agreed settlement.Now, you will have pretty good documentation.

Of course, there are specific steps towards settling your credit card debts on your own.Remember the three tips here and you will do just fine in this process.

There are steps that you can carry out. For more ideas about how can I improve my credit score you should read our articles about getting a credit card debt negotiation settlement

After reading this, I’m sure you believe that getting out of credit card debt isn’t that difficult.

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