Debt Settlement - How to Settle Your Debt With Your Credit Card Company

Debt settlement refers to making lenders agree to accept less than the full payment owed to the borrower. For example, if you have $10 000 owed to the lender, you can negotiate with them and settle a deal in which you are allowed to pay $500 as full payment. Although debt settlement is not an easy process because it takes a lot of duration, endurance and courage to settle a liability but it can save you thousands of dollars you can't afford.

When you have come to a point where you can't pay to the credit corporation anymore stop making your payments. And try to do a debt settlement; companies won't mind settling with someone who had made continuous payments. They will also settle a deal because they know that if they don't their accounts will go delinquent.

When you stop paying to lenders, they start to continuously call you and threaten you. Ignore those threats. After some time they will turn your account over to a collection agency that may call threatening to sue you, garnish your wages and take your house or car. Know this fact that they can't do anything only the real lenders can go to the court, and they never make an attempt to do that.

Now start making offers to the lenders, tell them that the present age is of recession, and if they go down, these big industries will also go down. Talk to the supervisor and tell him all the reasons why you cannot pay. Give the first offer low like with 25%. So, if you owe $10,000, offer them $2,500 to be waived. More than likely you are going to end up somewhere around $5,000, or half to pay them as full payment, but every case is different. Remember your first debt settlement offer will be refused.

Use the threat of bankruptcy, to keep negotiating with the lender because in bankruptcy they would get nothing at all. It will take a lot of time for them to accept your deal, but you need to stay firm on your ground. There will come a point where the lenders will start to agree.

Once you have come to an agreement on debt settlement with the lenders. Ask them to write it and then send it to you. Do not start paying unless you have received a written agreement. Now when you have received the written agreement, start to pay off your debts as soon as possible. Make sure to keep a record of the payments. And try to stay away from plastic money in future as much as possible.

If you are over $10,000 in unsecured debt it would be wise to utilize a debt relief network instead of going directly to a debt settlement company. Using a debt relief network guarantees that the debt settlement company you choose has been certified and has established success in negotiating settlements. They are free to use and a good starting point to begin your debt relief process.

Debt Relief Network.