What Happens If You Don’t Pay Your Credit Cards On Time?
Seems like you have decided to take this on yourself in the place of hiring a debt relief company. 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.Not too long ago, a nurse with a little bit of groundwork in tax laws took on the IRS single-handedly then so can you in the case of debt relief.
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.
You must ensure that your accounts are considerably delinquent
You can try to negotiate a lower principal amount on your credit card bills as soon as you feel that making the minimum monthly payment is not going to be possible or if you feel that the debts are not going to be paid due to other fiscal priorities/emergencies.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 writeoff causes the account to drop in value significantly and third parties usually buy these for real cheap – sometimes around 4-6% of the original amount.
To avoid this from happening, the credit card company will be more than willing to settle your debts through negotiation.If the creditors get half of what you owe, thats much better than the 5% they would’ve gotten from the third party collection agencies.
Document Everything
The days of verbal agreements holding any value are long gone and especially when it comes to credit card debt settlement. After all, it will be your word against the word of the collection agents and you should know by now that nobody wins in such a case.
Instead, you should maintain detailed and descriptive records of everything pertaining to the negotiation and settlement of your credit card loans. 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 must make a conversation over the phone, keep descriptive records of it. Take note of the time and date, the persons you spoke to, their contact number and the general flow of the conversation.
Use Certified Mail
Once the settlement has been reached, send your payment through certified mail or any mail that can be tracked.Send the check along with a memo clarifying that the check is the full payment along with a copy of the settlement that was reached. This way, complete documentation is achieved.
Dont forget the specific strategies that you need to use to settle the debt by yourself.Remember the three tips here and you will do just fine in this process.
There are steps that you can carry out. For more information on how to raise your credit score fast you should read our articles about getting a credit card debt negotiation settlement
Now, when you are wondering -how can I improve my credit score? – you will know the answer(s)..
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