When you have a huge amount of credit card debt, it can add loads of stress to your life. The phone calls likely come at all hours of the day and night, and the creditors can be ruthless in their attempts to collect any money they’re owed. When this happens, something needs to be done and done quickly so that you may regain your sanity and relieve some of that stress.
The best thing to do in your situation is to write a credit card debt settlement letter. This is a letter that states you intend to make good on your debt but you want to do it at a discount. The credit card companies would rather receive some money from you rather than no money at all so many of these companies will negotiate with you if you present a good enough offer. That’s the intent of the credit card debt settlement letter and it had better be professional.
It should go without saying, but your credit card debt settlement letter must be typed. If you hand write a credit card debt negotiation settlement letter, it’s likely going to end up in the trash as nobody will give it the time of day. It should have your name, your account number, your address, the address it’s going to and the settlement you’re offering. You should also include your reasons for getting so far behind. That last part isn’t really necessary but you never know if someone reading it might be sympathetic to your plight. You should proof your letter multiple times before you send it and make sure you have the proper postage.
How much should you request your settlement for? That all depends on how much you owe, how far behind you are, and whether or not your account has already been sent to collections. If you are a good customer, for example, and you’re someone who usually pays on time every time, you may be able to get away with a lesser settlement amount than someone who is continuously late and owes a substantial amount. You should be able to get a good idea of what you can and can’t get away with, and you can base this on your previous dealings with the credit card company.
Of course you don’t want to go too low or else your credit card debt settlement letter may never make it to the person you need to read it. If you go too high, however, you may risk paying more than you need to. The best way to go, then, is to go right down the middle of the road. Make your offer a balance of too low and too high and you should receive a reply back.
There are three ways your credit card debt settlement letter can go. It can get denied outright, it can be accepted, or you can be counter offered. All three responses at least let you know someone read your letter. If you’re denied, send your credit card debt settlement letter again with a slightly higher amount. If you are counter offered, send another offer just a little lower than theirs to see if you can get away with it. And if your offer is accepted, good for you. You’re now that much less in debt and that should be a huge weight lifted off your shoulders.