Credit Card Debt Elimination - How to Make a Debt Settlement Deal With Your Creditors

How does owing less to your credit card companies seem? I bet you think it seems pretty great. You might also think that is seems unrealistic. We are often told to be careful of debt relief scams. While of course you want to protect your good name and your finances, but know that you really can eliminate a percentage of your debt and this percentage can be a pretty high figure.

So how can you go about making a settlement deal with your creditors?

Start by determining how soon you want to get out of debt. Now, it is important to be realistic with this figure. I know that you want to see debt relief tomorrow, but that isn't going to happen. It takes most individuals at least one year to be debt-free. If you owe $50,000 or more, it could reasonably take you a few years. So set a good goal.

Now, you have a goal in mind. For example, you want to be debt-free in 5 years. Now, how much money can you put towards paying off your debt? Before coming up with this figure, be sure to do a few steps first. Most importantly, go through and familiarize yourself with how your money is spent each month. Free up as much money as possible by eliminating unnecessary purchases or trimming your monthly expenses when possible.

So right now you have a figure that you can afford to pay each month. In five years, you will encounter 60 months. Take that amount you can afford to pay each month and times that by 60. Right there is the very most your settlement offer should be. Generally speaking, you should ask for no less than to have 50% of your debt eliminated.

Whether you decide to go with 50% of your debt reduced or if you decide to use the above mentioned calculations, you are now ready to contact your creditors. Remember that your goal is to seek debt relief. This means hold your ground. State you want X amount of your debt eliminated and this is why. If after a little bit of negotiating they don't agree, lower your total a little bit. It isn't recommended that you automatically go with the figure they give you because it likely isn't good enough.

Please note that this article focused on seeking debt relief through settlement by dealing with your creditors yourself. If you don't want to do all the hard work and negotiating, you don't have to. There is still a great way for you to get some of your debt eliminated. You can do this by enrolling in a debt relief program, namely one that has a focus on debt reduction, elimination, or settlement.

If you are over $10,000 in unsecured debt you really should consider getting a debt settlement. Creditors of unsecured debt are fearful of collecting and they also have stimulus money to make debt settlements financially feasible for them. Once the economy turns around it will be too late to eliminate your debt.

Check out the link below to locate legitimate debt relief companies in your area: