Settle Your Debts!

There are many of us out there that have made mistakes in our lives (we are all human) and racked up unmanageable debts. Likewise, a lot of us are behind on those debts or have defaulted on them all together. Don't Despair! There is a way out that works for everyone. The credit card companies (and their rotten debt collectors) will settle for 30% to 50% of the balance owed.

A lot of us are also embarassed by this situation and we try to ignore it. Don't. You can settle and you can do it yourself. Do not be afraid and DO NOT USE A DEBT SETTLEMENT COMPANY. (More on these rip-off artists later). Below is my quick and easy guide to settling your own debts. But be aware, the process can be slow and you will be harassed. Just be patient and good things will happen. I've done this myself and it works.

Phase I

During this phase you may have suffered some sort of personal setback (loss of job, reduction in income, or just unmanageable debt). You will have missed a payment or realized that you can no longer service your debts. Do not worry, while your credit card company may start calling you (every day) just explain that you can't make a payment at the moment. Be firm. Do not agree to make a payment that you can't afford. Do not let them intimidate you.

Phase II

Three months have passed and you have not made a payment. At this point, you have a choice, ask for a hardship plan and begin to make payments, or, if you can't afford to make payments, ask for a settlement. The credit card company will not be that receptive, but ask. And ask for a settlement of 10% to 15% of the balance. The first time you ask, the credit card company may laugh, may tell you that you are crazy, and may tell you that you are a deadbeat.

IGNORE THEM.

Once you make the first offer, the credit card company will make an offer to settle for 90% to 95% of the balance owed. Politely decline (unless you can or want to pay it). The phone calls will continue. I suggest that you get caller ID so that you aren't talking to them every day. But be patient. Talk to them every couple weeks and ask for a settlement each time. You can increase your offer slightly each time you speak with them and they will do the same. Keep this up until you get an offer that you can afford. During the time it takes to get a settlement, put money away so that when you reach an affordable amount, you can pay it right away. This process may take 3, 4, or 5 months, but eventually you should be able to settle for 50% of the balance. You may be lucky, or stubburn enough, and get a settlement offer for less.

If you reach a settlement with the credit card company, you can pay it immediately by electronic check. You don't have to worry about a credit card company. They have federal and state regulations and you don't have to worry with them like you do with debt collectors.

Phase III

If you reach phase III, then you have thus far been unsuccessful, but it's not over! At around 180 days past due, your credit card may charge off your account and give it to a debt collector for collection. You start the negotiation process all over again. Start at around 20% and work your way up. Eventually, you will get a settlement. Again, keep putting money away so that you can settle when you reach an agreeable and affordable amount. However, with a debt collector, be very wary of paying them right away. Debt collectors are the worst characters and will lie, cheat and steal to get any money from you that they can. Pay them only with a money order and demand the settlement in writing before sending in the money. Also, demand that they confirm receipt of the payment and that the account is settled.

Phase IV

Debt paid off. It may have taken a little time, but everyone got what they wanted. This is so easy! And DO NOT FEEL BAD. The banks have put themselves in this situation and they deserve what they get. And don't be naive, the bank has still made money, just not as much money as if you had completed their 30 year payoff plans.

I have used this method, and I continue to use this method, with several credit cards and I have received settlements of between 30% and 50% of my debts. This plan works and the best thing is, ITS SO EASY!!!!!

Congratulations and Cut Up All of Your Credit Cards! Cash Only is the new American Motto!