Negotiate credit card debt » Credit Card Debt

How Can I Settle Credit Card Debt Myself?

admin — Sat, 25 Dec 2010 13:59:56 +0000

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

Debt Settlement In Florida

admin — Thu, 07 Oct 2010 06:04:01 +0000

Thousands of people across the country are faced with overwhelming debts on a daily basis. Many of these people feel that filing for bankruptcy is the only viable option to remove themselves from debt. Fortunately, debt settlement, which is also known as debt reduction or debt negotiation, exists. It is a way of reducing debts that does not involve completely destroying a credit score.

Debt settlement is a new way of dealing with debt and credit problems. It involves negotiating a debt settlement problem with a creditor. Typically, a debt counselor will help in the negotiation of the plan to remove debts. This whole concept is a legitimate solution for consumers whose credit card debt is overwhelming. The concept is equally useful for people who have fallen behind on payments as it is for people who are barely able to afford the minimum payment.

Unfortunately, no solution to debt is completely free from potential downsides. Debt settlement, like other options, will have a negative effect on a person’s credit rating. Fortunately, this will be less drastic than if an individual files for bankruptcy. There is also the possibility that the creditor will take legal action to collect the full amount owed to them. The final potential downside is that creditors will continue to call until the debt is settled.

The potential for negative consequences is diminished in Florida due to the state’s favorable debtor laws. Florida provides its citizens with numerous rights and protections concerning past due amounts on unsecured accounts such as medical bills, credit cards, repossessions, and personal loans.

All states have laws that require collection agencies to stop contacting a consumer if the consumer sends a Cease and Desist letter or a Power of Attorney letter which tells the collection agency that a third party is responsible for handling all communications with the creditor. Florida protects its citizens more by limiting the harassment from collection agencies as well as the original creditor (this is the bank or credit card company). The same laws which regulate and restrict what a collection agency can do also restrict the harassment abilities of original creditors.

In addition, Florida has set up laws that frequently completely protect a debtor’s wages and homes. Wages are protected by the state’s wage garnishment laws. This legal structure gives a creditor more of an incentive to settle.

Many cases, despite all of these protections, do end up in court. This is because creditors always have the right to sue a debtor as a means of collecting a past due amount. This is true regardless of whether the consumer has taken any action to resolve outstanding debt.

By: Joseph Devine

Eliminate Credit Card Debt – Reduce Debt without Bankruptcy

admin — Tue, 05 Oct 2010 15:20:55 +0000

Acquiring too much debt can put a major strain on a household. To eliminate debt, many people consider bankruptcy. With the new bankruptcy laws, it has become difficult for some people to eliminate debt. However, many will continue to qualify for bankruptcy protection. The effects of bankruptcy are long term. Before considering bankruptcy, it helps to explore solutions to debt elimination. Here are three tips that can help reduce debts.

Limit Credit Card Use and Pay More than Minimums

People file bankruptcy with varying credit amounts. Some have acquired over $10,000 of credit card debt, whereas others only have about $2,000. Individuals with small debts can usually payoff the balances without bankruptcy. However, these persons must be willing to make sacrifices.

If attempting to eliminate debt, stop using the credit card. Paying only the monthly minimum, and then going on a shopping spree defeats the purpose. Before you can successfully eliminate credit card debts, you must commit to using cash for all purchases. Additionally, the majority of minimum payments barely reduce the finance fees. To notice a significant reduction, endeavor to pay the minimum payment, plus an additional $50 – $100.

Negotiate a Lower Interest Rate

If you have maintained a good payment history with a credit card company, attempt to negotiate a lower interest rate. When contacting the credit card company, highlight your history with the company such as length of credit account, payment history, etc. If your credit is good, the company may consider a reduction. Before approving the request, you must consent to a credit check.

In addition to evaluating your history with the company, they will also assess whether you maintain a good payment record with other creditors. If your credit score is low, it may require the help of a debt consolidation agency to convince creditors to lower interest rates.

Once your credit card interest rate is lowered, you pay less finance fees. Thus, a larger portion of your monthly payments will help reduce the outstanding balance.

Consolidate Debts with a Home Equity Loan or Refinancing

Owning a home provides a huge advantage. Homes increase in values, thus they gain equity. As a homeowner you have the option of tapping into your home’s equity. Through a home equity loan or refinancing, you have the chance to get hold of a lump sum of money that can be used for different purposes. One such purpose includes debt consolidation.

Also, try using one of ABC Loan Guide’s
Recommended Credit Card Debt Elimination Companies.

By: Carrie Reeder

Credit Card Debt Settlement Program Explained

admin — Sun, 15 Aug 2010 08:37:33 +0000

A credit card debt settlement is an agreement between a debtor and a creditor to negotiate debt for a reduced percentage of the payoff amount (typically 35%-50% of the total debt). A credit card debt settlement begins when the creditor agrees to cancel part of the debt and accept the remaining percentage as full payment. Credit card debt settlement is also known as “credit card debt negotiation”. Consumers who use debt settlement are those who are having financial hardships, and wish to avoid filing for bankruptcy. Credit card debt settlement programs are provided by debt settlement companies who negotiate settlements on behalf of the debtor. Typically, credit card debt settlement programs can get individuals and companies debt free in a short period of time.
Benefits of a Credit Card Debt Settlement Program
Debt negotiation and debt settlement is an option worth considering because:
oYou get out of debt without filing bankruptcy. You will never have to check the “yes” box to the question “have you filed bankruptcy?”
oIt is simpler and quicker (4-18 months) than a Chapter 13 bankruptcy (36-60 months).
oIt is quicker and cheaper than most consumer credit counseling plans. Credit counseling plans typically last for 3-6 years, and sometimes longer.
oIt is not a public setting. Everything you do is private. You will never be required to justify your monthly living expenses to the Bankruptcy Court and a representative of your creditors (the Trustee).
oCredit card debt settlement companies work only for you. Most credit counseling firms are there to get the best deal the credit card companies can squeeze out of you. By contrast, loyalties are to you, not your creditors.
Q: Is debt settlement the same as debt consolidation or consumer credit counseling? No. With credit counseling, you must pay back all of your debt plus interest. While they will reduce the interest rates from say 20% to about 8 or 9%, you still pay interest. With consumer credit counseling, you have to pay back 100% of what you owe. With debt negotiation, you pay back a fraction of what you owe. Also, Consumer Credit Counselors are paid by the creditors so they are really working for them and not you. With debt negotiation, we work only for you, not both sides. Credit counseling can be a good solution if you have less than about $10-$15,000 of debt and the plan they propose fits your budget and is less than 36 months long. In most cases, consumer credit counseling plans are 4-6 years, and that is too long, and it damages your credit further.

By: Stephen Craig

Debt Negotiation Equals Reduction and Debt Canceled

admin — Sat, 03 Jul 2010 15:59:24 +0000

There is a new way termed debt canceled which is a process to eliminate your credit card obligation with self-negotiation. Being financially free by self-negotiation may seem difficult because you are required to work this process. The procedure for financial relief can be really simple when you find the right help you need. You contact your creditors and request that they cancel your credit card debt because you are unable to pay them based on your hardship so you can avoid bankruptcy. You can just send your creditors letters explaining your situation and that it would be to their advantage to cancel all of your money owing. You will need to give them all of the pertinent information about yourself so that their decision to cancel your financial responsibility will go your way. Credit negotiation does not have to cost you any money because you can do this yourself with a little help from knowing about debt canceled. Complete elimination of your financial burden is the goal to go after.

Using a formula called debt canceled provides you all the information you need to get your situation under control. Your credit card account balance can be erased. You can receive the relief you are looking for. What exactly is the definition of Debt Canceled? This is when the bank or credit card company cancels your entire obligation that you owe them because of your inability to pay. You then will have no more monthly payments because your balance has been canceled. You are then free and clear of any commitment to that bank or credit card company.

Debt management, consolidation, paid negotiation, reduction, & paid counseling are things of the past. Even if you use debt consolidation you will still have monthly payments for years with a balance. Discover how to eliminate debt with no monthly payments or balances by self-negotiation in the way of mailing letters describing your situation instead of phone calls or setting down at a table to negotiate. Creditors may try to manipulate you over the phone just to get you to send them more money. Never negotiate your credit card liability over the phone. The same holds true when setting down at the table in person to negotiate. You do not want debt reduction. You want a complete elimination of your entire liability, which would mean no more monthly payments or balance on your credit card accounts.

You can avoid bankruptcy and the high costs that come with it by using a system of debt elimination explained in detail. I’m not a lawyer but I know that there are new kinds of debt solutions today for the one who is struggling with money owing and has no money to get the help they need. The Banks and credit card companies are making millions of dollars off of our purchases and then give us back pennies as an incentive to charge more. How can you eliminate these monthly payments and balances using their program?

Debt negotiation equals reduction and debt canceled of all credit card obligations to become financially free. When your spouse losses their job and could not find work then your income will not be enough to pay your credit card balance and your basic living expenses. Even when you charge not only food but also your utility bills. Finally the money owing was getting more than you can bear because spending had to continue, going deeper into financial ruin. You may or may not be able afford to file bankruptcy. You can get some free financial counseling and credit management as an option. Study the subject of money owing and learn some legal things.

By: Bill Naugle

How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation!

admin — Wed, 23 Jun 2010 08:31:57 +0000

Has credit card debt got you thinking about bankruptcy?

You’re not the only one these days. Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of us, our paychecks don’t climb as quickly.

If you’re on the verge of bankruptcy, you may have another alternative.

Debt negotiation is a process where you negotiate with your creditors to pay off your debts at a reduced amount – for example, if you owe $12,000, you can negotiation a payoff of $5,000. The benefit for the creditor is that they get more money than they may have through bankruptcy, and they get the money sooner. The benefit for you is obvious – you get out of debt faster, and save lots of money in interest.

Where do you get the money to pay off the debt?

Take the money you would have normally used to pay your credit card bills, put it aside, and when you accumulate enough to pay off the debt, send in the reduced amount you agreed to.

If this sounds confusing, that’s ok. It’s really not.

There are many professional companies that will do all the work for you, and charge you a percentage of the savings.

I can speak from experience (I built up a lot of debt trying to start a sporting goods business, which didn’t quite work out) that even with the fees, this is a good deal – plus you save a lot money by not having to pay the high interest rates on your credit card bills.

Sure, it is a more aggressive approach to getting out of debt than making minimum payments, using credit counseling, getting a debt consolidation loan, or borrowing from a friend or relative. But in the end, you’ll get out of debt faster…

And avoid bankruptcy!

If you’ve never heard of debt negotiation (also called debt settlement), that’s ok too, not many people have. I didn’t until I began to seriously consider bankruptcy.

One reason many people are hesitant to consider debt negotiation is that it goes on your credit report. Sorry to tell you, but having lots of debt (even if you pay on time), making payments late, even credit counseling – all go on your credit report and can negatively effect your credit. And (of course) bankruptcy is a big negative!

In my case, getting out of debt, removing all the financial stress, and being able to live a normal life were well worth it. With so much debt, having good credit was meaningless anyway.

Plus, I was able to get all but one of the negative items off my credit report (that’s a topic for another discussion), and my credit is now back to normal. In fact, I now get more credit card offers than I can handle – and fortunately, I can now throw them all in the trash!

When money is tight, and debt is high, there aren’t many simple answers.

But if you are already considering bankruptcy, then debt negotiation might be the right alternative to help you get out of debt faster!

By: Kris Bickell

Questions to Ask a Credit Counseling Service about Debt Relief

admin — Wed, 28 Apr 2010 12:30:59 +0000

Debt relief is a topic on a lot of consumers’ minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple the amount from 1989. In that same time period, the average credit card increase for a middle-class family was 75%. The amounts were even higher for low-income families and senior citizens. At one time, such a high amount of credit card debt would seem frivolous as buyers spent money they didn’t have on luxury items such as electronics or jewelry. Today, however, in less stable economic times and a poor job market, more people are turning to credit cards as a way to extend their income. More and more debt is being rung up for everyday items such as groceries and medical bills. How can people get real help with debt relief?

Credit counseling services were originally established by credit card companies who wanted to get at least some of their money back before a client decided to declare bankruptcy. While that may seem shady to some people, for others it is a legitimate way to pay the debt they owe.

When seeking debt relief, however, be wary and be an informed consumer. Do your research before signing on with any one service. Here are some questions to ask:

* How much does it cost? Many less-than-reputable services charge hundreds of dollars to start up, money that doesn’t go to any of your creditors.

* Does the service notify credit bureaus about your enrollment in their program? Some do and some don’t. Creditors may still elect to put a bad mark on your credit report, but the agency you are looking at for debt relief shouldn’t.

* What services are offered? Do they offer a range of solutions from trouble-shooting before finances are a big problem to debt management. Beware of companies promising too quick a solution or promising to “fix” your credit report.

* What are the benefits of belonging to one particular group over another? For example, some services offer newsletters and budgeting tips, all to help you become more stable when your debt is paid off.

* Are they a member of the Better Business Bureau? If that is not advertised, check them out with BBB first.

With time, patience and diligence, you can become debt free.

By: Tim Gorman

Debt Negotiation Advice – How a Proven Settlement Company Can Reduce Your Debt Fast

admin — Wed, 28 Apr 2010 00:56:31 +0000

You have been searching most desperately for debt relief. Do not worry; you are not the only one who is doing so. Most US citizens are searching for debt relief to handle their Credit card debt. What are the various options available to you?

The options fall in broadly three categories; debt counseling, settlement, and bankruptcy. Let us take a look at all three and see which option is the best for you. If you are a small time debtor with a few hundred dollars of Credit card debt, counseling is the best option for you. You need not be even reading this article. If you have come this far it is needless to state that you are down with Credit card debt of more than a few thousand dollars. In this case you need to look at debt relief through bankruptcy or a debt settlement.

Bankruptcy is a legal procedure and needs to be taken very seriously. It has certain nuances and requires detailed documentation. The biggest disadvantages of bankruptcy are two; it does not discharge all types of debt and will cause a huge dent in your credit score. If you though that you could max out all your Credit cards and file bankruptcy you were really mistaken. Debt acquired without the intention of paying back amounts to fraud and can not be discharged by bankruptcy.

Take a look at debt settlement. You need to sign up with a debt settlement company for debt relief. After that you stop paying your installments and answering collection calls. The settlement company will do it on your behalf. You can go in for a consolidation loan to pay up 40 to 50 percent of your outstanding debt at one go. In exchange for a one time payment the debt settlement company will negotiate a waiver for you. Balance of the amount will be waived legally.

The consolidation loan comes at a decent rate of interest with easy installments. You become debt free within two to three years.

By: Lisa Archer-Jones

Credit Card Debt Help – How Stimulus Money Makes Credit Card Debt Relief Programs Attractive

admin — Mon, 26 Apr 2010 11:41:47 +0000

The recession and stimulus money offered by government is greatly responsible for making the credit card debt relief programs attractive. The program is gaining wide popularity amongst people looking for credit card debt help. Millions of credit card debtors are relieved and it still has potential to offer debt freedom to many more.

The credit card debt is an unsecured debt offered by the companies to the consumers without any collateral. With millions of their client losing jobs and declaring incapability to make minimum monthly payments they have no way to recover the unsecured debt from the debtors. The loans they offered without any security made their financial situation very critical.

The profits of credit card companies depend mostly on the late payment penalties, different interests and services charges. The unexpected economic crisis brought these companies in very adverse situation. Increase in number of people filing bankruptcy was making the situation worse and the multibillion credit card industry was on the verge of collapse. The stimulus money offered by government has helped these companies to come up with the settlement plans.

These settlement programs are bringing relief to them as well as to their debtors. The debtors are finding the settlement program attractive as they are relieved from their credit accounts that have fallen behind. With the creditors being flexible the settlement programs offer them short term repayment plans and savings amounting to 20 to 80 percent of their original debt amount. Another thing that makes this debt relief program attractive is its effect on the credit report of the debtors.

If you are in devastating debt and want credit card debt help, it is better to hire a legitimate debt settlement company. It helps you to get the most favorable settlement. The IAPDA certified professional are well versed in the laws governing debt settlement industry. They are also well versed in different negotiation strategies will try to save you as much money as possible. They will charge their commission on the amount they save for you. Hence they have your interest on mind as their commission and track record depends on the successful ending of negotiation.

The federal stimulus money that came in at the time of economic hardships is making it possible for many credit card companies and its debtors to save themselves from the worst consequences of bankruptcy. The stimulus money offered as consumer debt bailouts is making the debt relief programs attractive and it has also generated a new form of employment for many people who have mastered the negotiation skills.

By: Diane Sheridan

Negotiating Credit Card Payoffs

admin — Mon, 26 Apr 2010 00:42:17 +0000

Are you sick of swimming in all the credit card debt that you have? Do you want to payoff your credit cards and be done with it for good? There is a great way to negotiate credit card payoffs so that you do not have to pay the full balance and here are some tips to help you save money.

First, if you do not think this is something you can do yourself, then you can consider hiring a lawyer or a debt service to negotiate for you. Depending on the service will depend on the cost and it is usually a percentage of how much they can save you on your bills. However, you can do this yourself as well and it will only cost you some of your time.

To negotiate your own credit card payoffs you will need to be armed with what the credit card companies are working with. You will also need to know what you can afford and whether you are looking for a full payoff in one payment or a payoff over a few months with multiple payments.

It is always easiest to start with your credit card that has the smallest balance and work from there.

Next, you will want to make the call and be prepared to make an offer. Make sure you communicate that you want to pay the debt off and your timeline for doing so. It is always easier to negotiate with an older delinquent debt than one that you are on time with and make payments on.

Offer them about 40% of the balance owed, but do not expect them to accept this. They probably will negotiate with you and will settle for somewhere around 60% of the balance. When you come to an agreement request that it be mailed to you and be made good for 30 days. This gives you time to pay off the debt and be done with it.

By: Gressly Stevens