A credit card debt settlement is a way to sort out old mistakes with your money and take back some control. You can reach an agreement with your creditors where you clear your account, one month at a time, with no more interest and possibly some of the past interest deducted for good measure.
The start this process, you need to know where you stand and what your future spending is going to look like. We suggest using a pen and paper – or a spreadsheet if you are conversant in that type of computer software – to list down your assets and debts that you have. This will show you where you stand. Don’t worry if the numbers look scary – you have to begin somewhere!
Next, pull together your own sales receipt, bank and credit card statements to get a snapshot of where you have been spending your hard-earned money. From there, you can draw up a spending plan, or budget, for how you will spend money in the future. This is crucial in order to know what you can afford to offer as a debt settlement later. Once you put down your income, total up your planned expenses, you can see what kind of surplus you have.
If the surplus is not to your liking, or worse, if it is negative, then you will need to reassess your spending. Likely it is higher than it needs to be because this has gotten you to where you are today. If we spent within our means we would not need credit cards to begin with. It’s time then to start to be a better steward with our money. See where you can cut back on spending, to increase your offer.
Once complete, you are ready to call the credit card company to discuss a credit card debt settlement. It is worth remembering that the person you speak with is specially trained to get the most out of you, so you will need to be clear what your maximum offer is and go no higher than that. Good luck.
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