Debt Consolidation – I Cant Pay My Bills, Help!
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.Not too long ago, a nurse with a little bit of groundwork in tax laws took on the IRS single-handedly then so can you in the case of debt relief.
There are certain things, however, that you must consider when settling credit card debts as a personal endeavor. These three tips will ensure that you are one step closer to successfully taking on those credit card companies.
You must ensure that your accounts are considerably delinquent
You might want to negotiate for lower principal amounts on your credit card bills as soon as you cannot pay the minimum monthly payment required or as soon as you feel that you cannot pay your debts due to other financial obligations. 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? Well, delinquent credit card accounts are written off as an accounting procedure once these have reached 180-plus days in the ageing method.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. After all, if they can collect 50 percent of the total debt, it is still way better than the 5 percent they will get from third parties.
Document Everything
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. Always send out letters with complete information to the proper addresses and addressees. Then, file these letters and other forms of communication in a binder for easy access.
If you do have a conversation on the phone, record the details. Take note of the time and date, the persons you spoke to, their contact number and the general flow of the conversation.
Use Mail That Can Be Tracked
When you have reached a settlement, always send your payment through certified mail. 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. This way, complete documentation is achieved.
Dont forget the specific strategies that you need to use to settle the debt by yourself. Just remember these three tips and you should be alright during the entire process.
These are some specific steps that you can take. For more information on how to clean up your credit report you should read our articles about how to avoid a lawsuit over credit card debt
