Credit Card Debt Negotiation - The Process Simplified

When you are in the running of a credit card debt negotiation, it is important to know that it is negotiating for a position of strength. The credit card companies do not want you to default. They make their money from you getting consistent payments. Payments that may go on for years and years.

You are the one in control. You want to get something from you, your payment. If your polite, professional and firm, you get what you want.

This is a serious situation. They have the ability to instigate legal action. This is unlikely for smaller balances, but it is always a possibility. I have seen balances as high as $ 15,000 turn out to be loaded without a lawsuit. I've also seen sales from $ 500 GO in court after a couple of phone calls. But legal action is a slow process, and you have time to react and negotiate the debt before the date of the court.

First, make sure to communicate via email. Do not give the collector to "No Way Out" situation by telling them not to call anymore. You will have them in a corner where they have little action, but the legal recourse. Credit card debt negotiation implies a degree of compromise.

Instead, tell them you can only contact via e-mail. And that will never contact you at work. You will need to prepare a letter to that effect and send them by registered mail, return receipt requested. In fact, all future communication with the collector will be by registered mail. And you always want to make sure you have a file of delivery receipts and a copy of the letter available so you can not dispute that has been shipped, and that they received it.

The problem is that with phone calls when you are involved in the negotiation of credit card debt, you need verification. If it was not written, it was not done because you have no way of proving if you end up in court.

Start your credit card debt negotiation at 20-25% of the original debt. The collection agency may have added to the fees and charges should not be included in the Settlement Amount. These fees will amount only 'to the collection agency trying to make more money, and have nothing to do with the debt to be settled.

Since the "secondary market" debt is trading at literally pennies on the dollar, the collection agency is doing a lot of money, even if they end up settling at 30 or 40% of the original debt.

Not willing to settle for play. Be calm and collected. Do not get mad, do not show hesitation. One thing I really want to add is NEVER let them know that you have a specific reason to settle the debt. Many people make an effort to resolve before applying for a home loan for example. This information is nobody's business collectors. If they find that the reason you want to fix it so that you can buy a house, you will never find a solution.

So, in review.

1. Never talk to a collector on the phone. Always use certified mail return receipt requested.

2. Start your trading at 20 - 25% of the original loan.

3. Do not include collection agencies add fees as part of your debt negotiation credit card.

4. Be calm, educate yourself to the process so that we can speak from a position of knowledge.

Just be patient. And make a good deal. Soon, this will all be behind you. Your credit card debt negotiation means you can get on with your life .......