How to Settle Credit Cards

Here are a few time tested tips to help you clear your credit card debt without the help of those scandalous debt management companies.

Difficulty: Easy

Instructions

Things You'll Need:

• List of all Credit Cards
• Amounts
• Telephone Numbers
• Credit Report (get it free)

1. get a ledger book, or make one. Gather credit card bills and arrange largest to smallest. Analyze your personal finances (we will use this later).

2. In ledger book, write ( largest to smallest) the credit card company name, contact info, and total debt.

3. Contact each card let them know you want to settle. Get a name of who will handle the settlement. Do not discuss your personal finances!

4. They may have a standard settlement. If it is 1/4 of the total, take it. if not go to step 5.

5. Analyze your finances and call each settlement rep. back. Offer them 1/4 of what the total debt is. Hold your ground. You may have to haggle or let them sleep on it, but they will take it. Especially if it is an old debt.

Tips & Warnings

• It is always best to not do loans to pay out debt. However, if you do not have enough cash on hand to settle all of the credit cards for 1/4 or less of the total, you may need to take out a small personal loan from family, friends or your local credit union. Let them know your intentions and you will see someone come through for you. Honesty goes a long way.
• not a financial professional but speaking from personal hands on experience.

[kennygolde]

on 9/8/2009 Nice article. I settled my own credit card debt from $212,000 to $30,000 and had over $115,000 in debt written off entirely using this process. Kenny Golde