How to Settle Personal Credit Card Debt

Personal credit card settlement is becoming a popular means of erasing financial debt. The key is to know when and how to use debt settlement to eliminate credit card problems and restore finances.

Instructions

1

First, make a list of all your credit debt including amount, interest rate, payment schedule, and required minimum payment before settlement.

2

Second, prioritize your personal credit card list starting with the highest interest rate and the smallest debt amount owed.

3

Third, look at minimum payment amounts of remaining credit card debt as well as personal amounts owed to determine if settlement is warranted.

4

Next before settlement write out your personal income and expenses and see if you can make any cuts to free up finances to pay towards credit card debt.

5

Determine if some lower credit card balances with particularly high interest rates can be paid off first, prior to debt settlement.

6

Investigate different credit card debt settlement companies including fees, payment amounts, procedures, and payment terms.

7

Research your legal rights involved in debt settlement in terms of procedures involved, credit card company rights, effects on credit ratings, and other financial implications

8

Compare these implications to other procedures for reducing or eliminating credit card debt such as debt consolidation, management, and bankruptcy before entering into a debt settlement contract.