Negotiate credit card debt

Several people have become the victim of Nigerian email scam. A Nigerian email scam is an easy way to cheat the people of world through online email system. This method exists for so many decades. To avoid being scammed through this way, read the tips below.

If you found any email that has an address of Africa, never pay attention towards this. This email scamming system always insists you to deposit large amount of money in your bank account. This may include the transfer of billions of dollars form a wealthy bank account to yours that are frozen or suspended. Just use your common sense that why a person wants to transfer such a huge amount to your bank account. Moreover, they also send email with the subject ‘Job Opportunities’ where you provide all important bank details for salary transfer. When these scammers find your account information, they try to steal the entire amount from your bank account.

Try focusing on email address from where these emails of GDS International Scams come. Sometimes they contain the name which seems to be very attractive at a glance. Those scammers use fake accounts to send emails to innocent people. The Nigerian email GDS International scam always sent in a spam folder so never pay attention towards these kinds of emails.

How To Settle Credit Card Debt On Your Own (“Do It Yourself” Debt Settlement)

I’m often asked, “How can I settle credit card debt myself?”

This is a great question.

There’s lots of info floating around about debt settlement in general; some good info mixed with some dangerously incomplete info… And watch out for all the bad and inaccurate info!

Here’s a quick step-by-step guide for you to accomplish your goal of settling credit card debt yourself:

First, let’s clear up a few things. Then I have three “keys” for you to follow to successfully settle your own credit card and unsecured debts…

Considerable time is required to document, communicate, negotiate and follow up to achieve these results. There are many strategies and factors to consider that may impact results. There are plenty of pitfalls to avoid. Settling yourself for 2/3rds can be a reasonable goal. The general consensus of industry professionals and insiders I know tell me overall, “doing-it-yourself,” consumers settle credit card debt on their own for about 75% on average.

My close friends, however, who are pros and found themselves in financial hardship during recent years, have achieved 10% settlements on many of their own personal credit card debt accounts — but this is only because they were willing to go the extreme distance and knew exactly what they were doing. These folks are the exception to the rule.

Many people are unsuccessful getting any reduction of their debt at all on their own, without even any relief from double-digit interest rates. These folks remain stuck on the exhausting treadmill of slavery to debt and money.

Professional negotiators (including attorneys and arbitrators) average about 50% settlements (some much better than others), and usually charge about 15% in fees (may vary by program type), putting the total cost to use a professional debt settlement service at an average of about 65% or less of your total unsecured debt.

Creditors DO give professionals representing a large volume of debt “special treatment” because large professional negotiators are the “bread and butter” for most collectors. They deal with each other every day. When a professional debt settlement negotiator comes to the table representing millions of dollars of client debt held in “bulk” with a single major creditor, it creates serious leverage for the consumers represented by the professional. Creditors are often willing to do these “bulk settlements” for substantially less than individuals would normally ever be able to achieve on their own.Still, I’ve helped many folks who have a knack for communicating, negotiating, documenting and following up (the four critical skills you’ll need to do this) to get settlements as low as 45-60% regularly.

Make sure you’re ready to do all the communicating, negotiating, documenting and following up required all on your own before you start.

If you are…

Here are the three keys to settle credit card debt on your own:

KEY # 1) The accounts must be delinquent.

Creditors will not settle for anything less than the full balance until your accounts are seriously past due. While good settlements are possible after only 60-90 days, typically settlement take place after 180 days + when accounts are “chargied off.” This is because when creditors “charge off” an account (an accounting entry), they are taking a tax benefit on the account by writing it off as a loss. This de-values the account, and it is no longer worth the full balance owed. In fact, the normal course of business is to sell the account as “bad debt” to a third party debt collector.

STARTLING FACT: In 2006, “bad debt” was sold to collectors for an average of $0.034 cents on the dollar. That’s 3.4%! Can you imagine? This means a $10,000.00 account is typically sold for only $340. Keep this in mind. This is exactly WHY debt settlement works so well, because it’s a better deal to the creditor or collector than any other option, such as a lawsuit, collections or bankruptcy.

With the economy getting worse and bad debt more than doubling in 2009, expect the value of bad debt to drop even further, which means better settlements and more savings for you!

KEY # 2) Documentation BEATS Conversation, every time.

DO NOT make any payments by phone.

Collectors will almost always ask for a check by phone. Say this:

“Unfortunately I’m unable to make a payment at this time; and am hoping to bring resolution to this matter as soon as possible. I understand you want me to make a payment right now, but that just isn’t possible. I will have $_________ (state an amount that’s roughly 35-50% of your balance, not a percentage but a round number) soon and want to settle at least one of my accounts with whoever will give me the best deal. Can you please send me an offer in writing?”

HINT: You can do this initially or in response to a settlement offer that’s too high… Write a “Hardship Letter.” Hand write or type up a letter describing your situation, your inability to pay and include information such as, divorce, medical issues, loss of job, disability or reduced income. Any information regarding your personal hardship will help your negotiation, so don’t hold back. Send this letter along with a request to settle the account for $_______ (again, a random amount roughly equal to 35-50% of your current balance).

Talking sincerely about your financial hardship, lack of income and inability to pay when requesting a settlement offer over the phone can help a lot. Think sob story, but be sincere. Still, in this game… documentation beats conversation, every time.

Track everything (documentation)… who you speak to, their name, phone number and extension, date and time. Keep everything organized in a folder, easily accessible.

NOTE: Certain creditors such as CitiBank, Discover, Kohls, Target and Chase if you live in FL, NY or OH will not settle for such small amounts. You should accept 60% to 75% in these situation and consider it good. All are more likely to pursue legal action as well.

KEY # 3) Use certified mail with return receipt.

Once you get an acceptable settlement offer in writing, send a check. But first… Write your account number for the account you are settling on the check and in the memo write “FOR PAYMENT IN FULL.” Send the check along with a COPY of the settlement offer by certified mail with return receipt.

Once the account is paid to a zero balance, you can do the normal process of credit repair and quite possibly have the account removed through disputing it and requesting verification.

But wait, isn’t “Do-It-Yourself” Debt Settlement like doing your own taxes or dental work?

Sure, it’s possible settle credit card debt on your own. Some people are naturally good at it and even enjoy it, but most of us would rather leave it to a professional to get it done right the first time.

It’s like changing your own motor oil… while most people don’t want to get their hands dirty, you certainly can do it yourself.

Debt settlement is by no means an exact science and it’s difficult for an individual lacking experience to determine if a settlement is fair or not. In addition, you have to directly handle all creditors’ calls and the harassment that come with the job. Many people are simply unable or uninterested in handling that kind of pressure, especially with the daily complexities of managing a job, household or family at the same time.

It does help (big time) to have expert guidance instead of learning on your own through trial and error (expensive and stressful). The cost of professional debt settlement programs may easily be dwarfed by the additional savings you’ll realize by “doing right” the first time.

Hiring a professional debt settlement firm with a good reputation can no doubt save you more money, give you better advice and get you out of debt in a much less stressful manner, enabling you to move on with your life.

This sums up the process of settling credit card debt on your own. A professional debt settlement program makes a lot of sense if the cost to you is the same or less than doing-it-yourself and you get to let the pros do most of the work for you.

FYI: “Credit Counselors” do not settle debt. I’m often asked a similar question, How can you settle a credit card debt without using a “credit counselor?”Credit counselors don’t actually settle debt,, but it’s a common misconception the general public shares. How many of us really know how this credit and debt stuff works? They often are able to reduce interest rates, and collect the full balance through a debt management plan where you pay them one single payment each month while they turn around and pay your creditors for you (hopefully) in full plus interest.

Of course, hiring the right professional for debt settlement services is a different discussion, but *watch out* because there are only a few “good ones” out there… mixed in with many unscrupulous salespeople who would lead you astray for their own gain in the debt settlement industry.

BUT BEFORE you can be certain debt settlement is the best for you, be sure to educate yourself on how credit works, your options for getting out of debt and how to choose what’s best for you.

No matter what…

Make it a Priority to Be Debt Free ASAP, and Stick To It.

Because nothing feels as good as freedom, after you’ve been a slave!

: )

Need More Help or Resource with Debt Settlement to Settle Credit Card Debt On Your Own (“Do-It-Yourself”) or to Find a Trusted Debt Settlement Program?

By: Jesse Niesen

You might be looking for debt relief negotiation letters because you find yourself in a desperate situation. The debt might be piling up and you are getting harassed by the credit card companies or even worse your debt has been sold to a collections company. Or you are just trying to get your debt played before these things even start to happen to you. You can get out of debt with just a few steps.

Stop using those credit cards. The very fist thing you need to do is cut up all your credit cards, even the ones that you are not relay using right now. You would not want to get back into debt after working so hard to get out of it. Bad habits die hard, so get rid of the temptation now. Do not even think about signing up for new credit cards either.

Get copies of your credit reports. It is a good idea to get copies from the top three reporting agencies which are; Experian, Trans Union, and Equifax. Make sure the items are reported correctly and there are not things that are incorrect. This also gives you a very clear picture of what you owe and to whom. Overdue accounts are often sold to collection agencies, its important to deal directly with the companies that you owe.

Make a list of phone numbers to call. This list should consist of the exact amount of debt that you owe as well as who you owe this money to. Also include account numbers and the date you went delinquent if you can find it. It is very important to be organized and take notes.

You can do a lot with a phone call.

Call the companies directly. Make sure you are talking to someone that can help. Do not be afraid to ask for supervisors. Explain that you are trying to clear this debt up and will do what it takes. Ask for a settlement. You are trying to get the company to take a lower amount to get the debt resolved. If you have any money saved from not paying your credit cards, then you will have something to work with. If not try anyway, they may agree to a payment plan.

Make your payment every month on time. You will have worked hard to get lower payments so do not ruin it by not paying as agreed. Painful sacrifices might need to be made, but in the end you will be free.

Do not for get to get your credit reports again a little while after you have paid your last payment, and then every year after that. It will take some time to get your good credit rating back. You need to make sure that those creditors are reporting that you no longer owe them. Some times they make mistakes here, so you will need to contact them to get those mistakes fixed.

A do it yourself method is not for everyone. This is time consuming and frustrating to get set up, and some credit card and collection companies will simply refuse to work with you. Sending a debt relief negotiation letter might help, but you may also want to try credit card debt relief programs in stead. What ever you do, just make sure you are doing something to get rid of that debt

By: DJ Bankey