Setting up a debt settlement with one of your credit cards could help you avoid paying a large percentage of what you owe. But even if you are interested in pursuing a debt settlement, your credit card company may not want to negotiate with you yet. Finding the right time to go after a debt settlement is important.
When Is Debt Settlement an Option?
When you accumulate a large amount of debt on a credit card, you may want to pursue a debt settlement, but most of the time, you have to be late on your credit card payments before the credit card company is willing to settle. According to MSN, you may need to be three to six months late on your payments before a settlement is an option.
Making Contact
After you miss a single payment, the credit card company starts trying to contact you. Most of the time, it uses an internal collections department to start the process. If that does not work, the credit card company may hire an outside collections agency. You will receive regular phone calls and mailings from the collector. After a certain amount of time, you could facilitate the negotiation with the collector. You could also contact the credit card company directly to start the negotiation.
Negotiating a Settlement
When you are ready to negotiate a settlement, you could do so on your own or with the help of a debt settlement company. If you start the process on your own, contact the company to ask about a settlement. Ask the company how much it would take to settle the account. If the company does not give you a figure, you might make an offer. If the company is not willing to settle yet, wait longer and then start the process over.
Why It Can Work
You may think that debt settlement would not be an option for most creditors because it involves their losing money. While technically this is true, it also saves them some money in some situations. For example, if you are close to filing for bankruptcy, settling your debt is a way for the creditor to at least get something out of your account. If you file for bankruptcy, the company will not get anything out of the process.
0 comments:
Post a Comment