A credit card debt settlement letter is posted out by the credit card company when seeking an arrangement to clear your credit card debt over an agreed schedule of payments. Settling your credit card debt in this manner can be an acceptable method to get past old debts that continue to hang around.
How much can you offer? That will depend on your income and spending. If you don’t already have a reliable budget drawn-up, you will need to put one together so that you are not negotiating blind when telephoning the credit card company. To do this you it would be helpful to locate your recent bank statements, credit card statements and any sales receipts you have lying around. You can use these to create a spending plan to cover the next few months. Remember to include the yearly expenses that it is easy to forget. This will create a surplus when you add your income and deduct your planned expenses.
What if your surplus is pretty small, or even negative, and you want to raise it? You can take on an extra job, or you can attack your spending to slash the cost of living your life. The choice is yours. Most find it easier to look at their daily and weekly spending to see what they can do to cut expenses. Over the years the expenses creep up because we’re really not paying attention to them. This is your chance to do so. Changing some habits, switching to lower cost brands or having a few less treats can help drop your expenses fast.
When you have your monthly surplus up to a respectable amount, you are ready to call the debt negotiator. Once you have reached an agreement, the credit company will post out a credit card debt settlement letter for your review. This will detail what has been agreed over the telephone. Make sure the details are correct and then you’re good to go.