Thursday, August 14, 2008

Simplified Process of Credit Card Debt Negotiation

When you are in credit card debt negotiation, it is important to know that you negotiate on a position of strength. Credit card companies do not want you to default. They make their money to receive payments in accordance with your hand. The payments, which may continue for years and years.

You are one in control. Do you have something that they want to receive your payment. If your polite, professional and firm, you get what you want.

This is a serious situation. They have the potential to provoke legal action. This is hardly small balances, but it is always a possibility. I saw the remnants reach 15000 dollars would eventually be charged to leave without a lawsuit. In addition, I saw the remnants of $ 500 to go to court only after several calls. But even legal action is fairly slow process, and you have more time to respond and negotiate debt before a court deadline.

First, you must make sure that you communicate by mail. Do not give collector "no exit" situation, telling them to never contact you again. Do you support them in a corner where they have little treatment, but legal action. Credit card debt negotiation involves the level of compromise.

Instead, tell them they can contact you by mail only. And that they can never contact you at work. You will need to prepare a letter to that effect and send them by registered mail, return receipt. Indeed, all future communication with the collector will be registered letter. And you always want to make sure you have a file of receipts and a copy of the letter so that they can not contest the fact that it was mailed, and that they received it.

The problem with the phone calls is that when you are involved in credit card debt negotiation, you need to be monitored. If this is not written, this was not done because you have no way to prove it, if you hit the court.

Start your credit card debt negotiations at 20-25% of the original amount owed. The collection agency may be added fees and charges that you should not include in the settlement amount. These charges only amount collection agencies are trying to earn more money and have nothing to do with the debt would be resolved.

Since the "secondary market" debt traded at just a few cents on the dollar, the collection agency is making a lot of money, even if they ultimately settle at 30 or 40% of the original debt.

Do not sound seek to settle. Be calm and collected. Do not get angry, not hesitant. One thing I really want to add, never let them know that you have a specific reason for the settlement of arrears. Many people make efforts to resolve before applying for home loans, for example. This information is none of the collectors of business. If they believe that the reason you want to resolve this so that you can buy a house, you will never get a settlement.

Thus, in the review.

1. Never talk to a collector on the phone. Always use a registered letter with return receipt delivery.

2. Begin negotiations at the level of 20 - 25% of the initial loan amount.

3. Do not include in the collection agencies to add charges as part of your credit card debt negotiations.

4. Be calm, the process of educating themselves, so that you can speak from a position of knowledge.

Just be patient. And do a good job. Soon, it will all be for you. Your credit card debt negotiation means that you can get in your life.

Share your thinking

Post a Comment

Eliminate Consumer Credit card debt © Layout By Hugo Meira.