The credit card debt settlement letter can be a good alternative to having to be brave by talking to a stranger at the credit card company about your debts. You can instead make a written payment proposal to clear your balance over a period of some months, cutting out a lot of the possible unpleasant negotiations at the same time, as well as possibly some interest too.
With the present financial crisis, credit card companies are bracing themselves for record levels of bad debts that their customers are unable to repay. If you are seriously behind on your payments, then you have an opportunity to negotiate something favorable. Credit card companies would much rather make a new arrangement with you that you both agree is workable, than end up with something worse and they lose most of their money that has been loaned to you via the credit card. They accept a certain risk when advancing credit to cardholders, but will want to will want to collect whenever possible. All this gives you a good chance at reaching a good arrangement.
Before you write to the credit card company, you will want to work out your numbers. The kind of information to gather includes recent spending, recent income, current debts and any assets like cash, savings, investments, etc. With your spending, you must put together a spending plan for the future, so that you know what you can offer in writing. This will be the surplus from your income, once you’ve deducted your spending.
To boost your surplus, you can cut back on your spending a little or take an extra job part-time. Cutting back is often easier to do. You do not have to not buy some chocolate, for instance, you can either change to a cheaper brand or buy something smaller than you usually do. Often switching to own-brands can help too. Small changes add up fast and you can boost your surplus substantially.
In your credit card debt settlement letter you will want to include your monthly offer, but ensure you include a statement of your current financial position. If you have taken on a second employment position, be sure to mention that too. Some people find submitting a budget is helpful and whilst it does give the credit card company a chance to nitpick through your planned spending, they will likely reply asking for a budget or spending plan if you fail to include one. Therefore, it will look more organized if you include one without being asked. Good luck with your settlement.
Related posts: