You can do credit card debt settlement on your own barring the assistance of a debt settlement company. Once you think that managing your debts has become truly difficult, you should go for a credit card debt settlement. Nevertheless, if you intend to perform credit card debt negotiation, you must always remember that this would hurt your credit score.

• First of all, you have to stop making your card payments. This would dock your credit score but it is important for debt settlement. Creditors would not be ready to do debt settlement if you’re a regular payer. They would only talk terms if they believe that you no longer have the capacity to make your payments. The most suitable time for credit card debt settlement is between 3 to 6 months subsequent to stopping your payments. Following six months, the account might be passed on to collections and you might not have the chance to settle your credit card debts.


• Make a debt settlement offer to your credit card company. Send it through registered post. You can also make an offer for debt settlement to a manager over the telephone but you have to ensure that you receive everything on paper. Your debt settlement offer has to mention a one time payment that you’re ready to pay for settling your credit card debt. Though a credit card debt settlement can incorporate a sequence of debt payments throughout a number of months, creditors would be more than willing to settle credit card debt if you make a complete payment. The amount might range between 30%-60% of your original balance.


• Obtain the debt settlement contract on paper prior to sending out a debt payment. When you and the manager have accorded on a debt settlement strategy, just ensure you have it on paper. The written contract must stipulate the precise amount of your debt payment. It should also mention that this debt payment would settle the credit card debt for the entire outstanding balance.


• Send your debt payment for settling your credit card debt. You must send a money order or check. Don’t provide the accessibility to your bank account to the creditor for collecting the debt payment since you’re providing them excessive access to your funds.