How to Eliminate Your Credit Card Debt If You Have Debt Cancellation Insurance
In an effort to attract and maintain more customers, credit card companies offer a variety of benefits. One such option your credit card provider may offer is debt cancellation insurance. Under federal law, debt cancellation insurance is not insurance at all, but a banking product. For a monthly fee, your credit card company agrees to waive your liability for any balance you previously incurred on the credit card should you die, become unemployed or suffer a disability.
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Instructions
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Contact your credit card company and inform the customer service representative of your unemployment or disability. Ask that the customer service representative send you a copy of the documents you need to fill out to activate your debt cancellation insurance.
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Request a list of the documents you must provide to your credit card company to prove your claim. The documents you need will vary depending on your credit card provider and your individual situation.
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Fill out any necessary forms and make copies of each document the credit card company requested.
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Mail the documents to the address indicated on the debt cancellation approval form. If the form does not indicate a specific address, contacting the credit card company and requesting the correct mailing address expedites the process and insures that your paperwork reaches the right department as soon as possible.
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Pay your credit card payments until the credit card company notifies you, in writing, that your application was approved and your debt cancellation insurance is currently in effect. Save this document for your records.
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Tips & Warnings
Some credit card companies have debt cancellation insurance forms available for download on their websites, making the approval process quicker.
Send your debt cancellation approval form and other documentation via registered or certified mail to reduce the chances that your paperwork will be lost in transit.
You must have signed up for debt cancellation insurance prior to your unemployment, illness or injury in order to take advantage of the protection it offers.
