Have you ever heard that there is possibility getting a discount or a cut of your debt when you are in trouble keeping up with debt? Yes, this is a kind of way out to the financial problem that you faced, probably during your time using a credit card. How to settle credit card debt steps below, however, doesn’t by any mean encourage you to abandon responsibility and take a shortcut to your problem. These steps serve merely as an alternative when you are in very emergency condition that forces you to be unable to fulfill your duty as credit card holder.
Take for example; you have more than one credit card to handle. In which, all of them consist of a rather immeasurable amount of debt. Suddenly, your health worsens and resulting in your inability to make monthly payment for more than half of the minimum. Hence, to have a debt settlement by following the steps of how to settle credit card debt is the best way.
Procedures of Credit Card Settlement
- Preparing for the request
Now in preparing the request, what you should do to begin the process of how to settle credit card debt? First, you need to claim your debt. It is to make sure that the debt is truly yours by requesting a letter of validation from credit card issuer. After you claim the debt, make sure that it is yet exceed the Statute of Limitations.
Another thing of the first step from how to settle credit card debt you need to note is try to reduce the balance in your credit card debt as low as you can. Since, debt collectors buy your debt from your original company by also paying an amount of pennies to buy it. They usually only take no more than the original debt if you success in negotiating with them.
- Settling the debt
For the second steps, in doing this step of how to settle credit card debt, you have to make an agreement with debt collectors. They should not report the agreement as ‘settled’ and instead, convince them to report it as ‘being paid as agreed’. Also, in settling your debt, debt collectors may require you to pay an excuse money or in all formalities—taxes. To avoid this, just make sure that in order to follow how to settle credit card debt; you should shave the debt off for no more than approximately six hundred bucks.
- Finalizing the agreement
In finalizing agreement, it is much recommended to record all the terms that both parties agree in a paper. Therefore, it is black on top of white to make an authentic proof just in case they decide to fail the terms later.
Those are the steps on how to settle credit card debt. As mentioned before, this doesn’t mean that you have the right to abandon the responsibilities you seem fit to do it. On contrary, you should consider well in using your credit card to avoid having this shortcut.