How to Settle Credit Card Debt

Video Transcript

"How to settle credit card debt. Now, my perspective is how to settle delinquent credit card debts. Now, if you have any delinquent accounts, naturally, the first person you want to call would be the lender and try to figure out ways in how to settle things, work, you know, obviously discussing or negotiating the term, term, terms of repayment ability that you have in terms of monthly payment that you can afford to pay back. It could be also entail you just calling the credit card companies because really some credit card companies are not banks and vice versa. If it boils down to a point where your account has been turned over to a credit collection company, those are companies that would typically buy these notes at a discount off of banks, then you may obviously, want to, you know, deal with them, contact them, find out who they are, get a copy of the credit report and contact those people and come up with a negotiation with them, just don't roll over, don't settle for anything, let them know ideally what you can pay, and obviously ask for a discount. You owe five, six, seven thousand dollars, ask for a discount, but mind you while you're doing that, one of the, you know the, some of the things that these banks could do if they accept, if the account is settled for less than the amount owed that the difference in there which in this example, say you owe ten thousand dollars, but you only settle for four thousand dollars, then the six thousand dollars, you may be receiving a 1099 in the mail and guess what, you have to pay taxes on that, but that's from my perspective, that's a lesser penalty, per say, if you want to call it by just maybe marginally increasing your tax space verses having to pay that six thousand dollars."