What is credit card debt settlement? It’s a way to reach a negotiated settlement for an outstanding balance on a credit card account. Easier said than done!
Debt settlement is a helpful first step in stopping a downward slide of ever increasing debt. Rising debt often originates from a job loss, high medical bills or other unexpected expenses. It helps to draw a line in the sand, getting future interest and other charges under control.
Advance preparation is key. It’s very important that you sound like you know your own situation clearly and only offer what you can afford. Debt negotiators are skilled in persuading callers to offer more than you can afford in the heat of the moment, but then you are expected to stick to this arrangement.
When you make the call, it’s scary because you do not know what to expect. Will the person on the other end of the phone be friendly or aggressive? If your account is overdue by six months or more, over the limit or no payment has been made for a good while, then expect the person to take a tough stance with you. Some debt collectors at credit card companies can be helpful and friendly, but more often than not they are trained to be tough, unsympathetic and may even resort to trying to embarrass or intimidate you. They ask personal questions like what you spend on entertainment or other items you’re not used to discussing with strangers and try to suggest you spend too much. Don’t be intimated. Keep calm. Follow your own script and only offer what you can afford.
Credit card debt settlement is worth the effort, time and planning. After you’ve made the call and reached an agreement you can afford, you’ll feel a sense of empowerment about your finances. If you owe money to more than one credit card company, see what you can afford to pay the others. You can then use this approach to go from strength to strength with your money.