** Credit Card Debt Relief Tip of The Day **

Can A “Do It Yourself” Plan Help To

Control Credit Card Debt?

By Donna Nell
Guest Author

After the colossal financial collapse in the US, people are submerged in the sea of debt. These debt stricken consumers are struggling hard to come out of this catastrophic financial situation. In such a situation, they rely on credit card debt settlement to eliminate their financial woes. You can easily manage and settle your credit card debt on your own if you follow some simple steps.

Here are a few steps that can guide you to settle your debts directly with the creditors:

1. Contact your credit card companies and negotiate with the creditors to reduce the interest rate. When the interest rate on the principal balance is reduced then a large amount goes toward paying down the balance.

2. Prepare a list of your credit cards include the name of the card, interest rate, your current outstanding balance along with the minimum balance and due date. Prepare a list of your credit card debts in descending order of the interest rate then it will be easier to pay back.

3. Try to calculate your minimum payment to estimate the amount required to pay off the debt. You can include additional money that you can use to put forward towards paying off the credit card debt each month.

4. You should try to save money for a settlement offer, then it will be easier for you to settle your debt like a professional. You can negotiate your debt with the creditors to reduce the principal balance by 40% to 50% of the owed amount. The creditor has to give his consent before you start repaying as per the settlement amount.

5. But remember that the settled accounts are considered as charged off accounts by the credit bureau. The Internal Revenue Service treats the forgiven debt as taxable income. Try to convince the creditors to report the account as “paid in full” instead of “settled in full”. Otherwise your creditor will consider you as a high risk borrower and you might face problems getting loans in the future.

** Credit Card Debt Relief Tip of The Day **

Try Negotiating with Your Credit

Card Company YOURSELF –

You May Be Surprised!

Are you mired in store credit debt? Perhaps you owe thousands of dollars to store charge cards. While stores prefer to be paid off in full (they’re a business, after all), they aren’t beyond compromising if you are sincere and honest. Call the credit controller and let them know your situation. If you are having cash flow problems or you anticipate having cash flow problems for a few months, inform them and let them know how much you can afford to pay them in the next few months. They may be willing to lower your monthly due for a few months or they could even lower the interest rate and forgo penalty rates.

It’s the same thing with credit cards. Credit card companies want their borrowers to pay them back. However, if you are truly experiencing financial hardships and you contact your credit card companies as soon as possible to work out a compromise, they are often more than happy to work with you. Credit card companies may lower your interest rate or lower the amount you have to pay for a few months without penalty. Whatever you and the credit card companies agree on, make sure you stick to it and fulfill your part of the deal.

There are companies that will do debt negotiation for you, but you have to be careful and prudent about whom you select. Doing your own debt negotiation can be just as effective, and save you a ton of money in fees.