I Cant Pay My Bills – Help!

So, you have decided that settling your credit card debts on your own is the better path instead of hiring a debt relief company for the purpose.  Well, if you have the talents and abilities to rival those of the professionals especially in the areas of communication, negotiation and documentation, then go on right ahead.  After all, if a nurse with little background in taxation and the law can single-handedly take on the Internal Revenue Service and win, then so can you where debt relief is concerned.

There are certain things, however, that you must consider when settling credit card debts as a personal endeavor.  These three tips will ensure that you are one step closer to successfully taking on those credit card companies.

Make Sure that Your Accounts Are Significantly Delinquent

You might want to negotiate for lower principal amounts on your credit card bills as soon as you cannot pay the minimum monthly payment required or as soon as you feel that you cannot pay your debts due to other financial obligations.You should bear in mind that the debt relief process cannot be used unless your accounts are sufficiently delinquent.

How deep should you be?  Well, delinquent credit card accounts are written off as an accounting procedure once these have reached 180-plus days in the ageing method.  The write-off subsequently devalues the account so much so that third parties can purchase it for as little as 5 percent of its face value.

To avoid this from happening, the credit card company will be more than willing to settle your debts through negotiation.  After all, if they can collect 50 percent of the total debt, it is still way better than the 5 percent they will get from third parties.

Detailed Documentation

In this day and age, verbal agreements hold very little merit when it comes to settling credit card debts through the debt relief process.It is your word against the word of the collection agency so there isn’t a clearcut winner in this scenario.

The other option is that you maintain excellent written records of all the matters related to the settlement and negotiation process with your creditors.  Always send out letters with complete information to the proper addresses and addressees.After that, file the letters and other forms of communication in a binder that is easily accessible.

If you do have a conversation on the phone, record the details.  Take note of the time and date, the persons you spoke to, their contact number and the general flow of the conversation.

Make It Certified Mail

When you have reached a settlement, always send your payment through certified mail.  Send the check together with a memo saying that said check is for full payment, if indeed it is, along with a copy of the agreed settlement. This way, complete documentation is achieved.

Dont forget the specific strategies that you need to use to settle the debt by yourself.  Just remember these three tips and you should be alright during the entire process.

There are steps that you can carry out. For more tips on how to fix a bad credit report you should read our articles about getting the best credit card debt relief help

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