When thinking about negotiating settlement credit card debt you want to focus on how you can benefit from it. There are several ways to do so. Past interest and fees can be deducted from the current balance, and you can agree to a fixed monthly payment, with less or no future interest charges, until the account is cleared.
Negotiating means talking with a debt collectors usually working for the credit card company itself. They have some quality training like anyone in their respective fields. This training will have shown them how to talk and negotiate with debtors (that is you), how to manipulate your emotions to elicit the reaction they need in order to get the most money out of you. Sound a little over the top? You’d be surprised. Debt collectors often work partly on commission, with department bonuses for top collector. There are, however, some ways you can combat this.
To start with you will want to know as much as you can about your own situation. This means your wages and your spending. To do this you can monitor how you spend money from now on, but it is faster to go back in time by looking at past checking account and credit card statements to review past spending. From there you can construct a spending plan. See if you have some surplus to put toward debts each month. What if you don’t?
Living below your means has become quite popular, especially lately with the recent difficult economy. It means to spend less than your wages. Even if you don’t do this right now, you can start. You can cut costs at the supermarket by picking cheaper brands and reduce the little luxuries to be less frequent but still an enjoyable part of your week. This will free up some much needed cash.
Negotiating settlement credit card debt is pretty easy to do once you take the above steps one by one. Take the first step today.
Photo: Andres Rueda