I Cant Pay Creditcard Debt – What Can I Do?

Seems like you have decided to take this on yourself in the place of hiring a debt relief company.  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 top 3 strategies will make sure that you are closer to dealing with those credit card companies head-on.

Make Sure that Your Accounts Are Significantly 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.You should bear in mind that the debt relief process cannot be used unless your accounts are sufficiently delinquent.

Wondering 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 write-off subsequently devalues the account so much so that third parties can purchase it for as little as 5 percent of its face value.

To prevent this from taking place, the credit card company will be eager to settle the debt through a negotiation process.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.

Maintain Detailed and Descriptive Documentation

The days of verbal agreements holding any value are long gone and especially when it comes to credit card debt settlement.  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.

Make It Certified Mail

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. 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 tips on how to fix a bad credit report you should read our articles about getting the best credit card debt relief help

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