How to Settle a Debt with a Credit Card
How to Settle a Debt with a Credit Card
There are thousands of people across the United States that have got a lot of personal debt in their amidst and the problems are really that debt can be so easily created but so difficult to get back out of again that it can seem like a sinking ship, one where you cannot escape from.
That unfortunately is going to happen to many people and for some; it is not a way in which you can actually get back out of again.
The reason why this happens is because of credit card debts; these credit cards are the one thing that stops us from getting away from debt, they can be a big hazard from time to time and something that not everyone can think about getting rid of.
There can be a way in which you can settle your credit card debts with a company however; you just are going to have some patience and a lot of luck to get out of this situation without a scratch on you.
You should firstly be thinking about getting a copy of credit reports from the three bureaus so that you can see what debts there are and make sure that if there has been a problem or something that hasn’t been accurate can be changed. If there are any corrections to be made then you should think about contacting the creditor in writing and make sure that your request of validating the debt copied so that you have an original copy.
If nothing is heard back within a month period then think about filing a dispute over the debt not being validated within the time period.
You should think about making lists of the debts that you have and what is coming into the household; think about comparing these so that you can understand the true cost of debt you are in and what you are bringing in to pay this back.
If you are thinking about settlement then you are going to have to get the debt and stop paying the debt, that you might think, is the wrong thing to do but it is one way that a company is going to want to choose debt settlement. They believe that you cannot pay meaning they are better off trying a settlement than anything else.
Remember however that the money that you were supposed to pay the debts with should be put into a savings account hoping to build on them with the interest the banks charge.
You should however call the creditors up and tell them that you cannot pay the next bill and that you probably wont to be able to pay the next bill either; try being polite as you inform them of your situation. Keeping record of everything that you have spoken to however.
Many creditors will say that they are going to threaten legal action of the payment but you shouldn’t think about that and try to negotiate with them after ninety days or so. This is the chance when you ask them to settle on an agreed price for the debt.
After six months, you should know that this is more or likely the time when a collection agency is going to be called in so remember this is going to have an effect on the credit history.
When the debt collection agency has got involved, make sure you get in contact with them and explain about your situation; you might be able to get a settlement plan with them. Don’t be swayed to pay more than you can because you will get into trouble when trying to pay the debt when you cannot afford the payments.
Keep trying to get a settlement plan in place with the collection agency, they might agree to this and when or if they do then everything should be put down into writing and made copies of.
Make sure any payments are done by a cashier’s check so that the creditors don’t have information on your bank details. Make sure that you get confirmation that your payments have been paid so that if anything should happen then you have the proof to say that you have paid the company back.
Tips & Warnings
- You should think about settling the personal debt around a year after the payments have been stopped so that you have a way to make sure that the debt is gone and out of the way.