Things You'll Need:
- Computer
- Pen
- Paper
- Credit card information
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Step 1
First, make a list of all your credit debt including amount, interest rate, payment schedule, and required minimum payment before settlement.
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Step 2
Second, prioritize your personal credit card list starting with the highest interest rate and the smallest debt amount owed.
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Step 3
Third, look at minimum payment amounts of remaining credit card debt as well as personal amounts owed to determine if settlement is warranted.
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Step 4
Next before settlement write out your personal income and expenses and see if you can make any cuts to free up finances to pay towards credit card debt.
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Step 5
Determine if some lower credit card balances with particularly high interest rates can be paid off first, prior to debt settlement.
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Step 6
Investigate different credit card debt settlement companies including fees, payment amounts, procedures, and payment terms.
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Step 7
Research your legal rights involved in debt settlement in terms of procedures involved, credit card company rights, effects on credit ratings, and other financial implications
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Step 8
Compare these implications to other procedures for reducing or eliminating credit card debt such as debt consolidation, management, and bankruptcy before entering into a debt settlement contract.
Comments
laume702 said
on 8/28/2009 This person did not mention that you will get a 1099 and you will have to pay taxes on anything over $500 written off by the bank. I have ten years experience in collections and settle out credit card debit everyday. It appears to me that alot people on site are giving out incorrect information and do not fulll know what they are talking about. Settling credit card debit also damages your credit rating for up to 10 years and many banks will decline a loan based on that.
trvlarrngr said
on 7/11/2009 Great tips for getting rid of debit. thanks