Debt Settlement Process - Do it yourself Credit Card Negotiation

Author: Maria Martin

Although it is referred to as debt settlement or credit card negotiation, which is true in the sense that you will eventually settle your debt BUT it is all about negotiation.
Negotiation is the skill that you are about to learn, not just to settle what you feed your credit card companies monthly but you are going to bring your whole debt total down by 50-80%, do it yourself debt settlement just like we did. YES! Your creditors are going to forgive the majority of your debt and you will be able to move on with your life within 6months.
It is Important to understand the big picture of do it yourself debt settlement and and the step by step credit card negotiation process below:
(1) Accumulate eg: $25,000 in unmanageable debt
(2) Decide that debt settlement is the right option
(3) Stop making all monthly payments.
(4) Put money in a savings account or get a loan from family/friends w/ 0% interest, if possible
(5) Identify the "sweet spot" at around 180 days. Best negotiation is between 150-180 days.
(6) Settle for as much as 50 to 80% off the original balance depending on each creditor.
(7) Written proof via a settlement letter what to look in a proper debt settlement letter.
PLEASE don't hire a third party to assist you with this because they want a percentage of YOUR DEBT as their commission! The do-it-yourself approach keeps most of the money in your pocket.
Why would your creditors take such lows amounts? Creditors get to the point where they know that you are not going to pay the balance off. They are further threatened by the fact that if pushed far enough you just might file for bankruptcy and then they won't get anything in some cases. Yes, they could turn it over to a third party collection agency but then they are going to lose another chunk to them, as a matter of fact, they may sell your accounts that are past the charge off date to collection agencies for 5 or 10 cents on the dollar.
We wish you the best in this Journey toward a better and more positive future Maria and family