How to Settle Personal Credit Card Debt

personal credit card debt settlement

Personal credit card settlement is becoming a popular means of erasing financial debt. The key is to know when and how to use debt settlement to eliminate credit card problems and restore finances.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Computer
• Pen
• Paper
• Credit card information

1. First, make a list of all your credit debt including amount, interest rate, payment schedule, and required minimum payment before settlement.

2. Second, prioritize your personal credit card list starting with the highest interest rate and the smallest debt amount owed.

3. Third, look at minimum payment amounts of remaining credit card debt as well as personal amounts owed to determine if settlement is warranted.

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.

5. Determine if some lower credit card balances with particularly high interest rates can be paid off first, prior to debt settlement.

6. Investigate different credit card debt settlement companies including fees, payment amounts, procedures, and payment terms.

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

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.

Resources

• Debt Solutions