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.If you have the skills and talents to compete with these professionals when it comes to negotiation, communication and documentation then give it a shot. 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 top 3 strategies will make sure that you are closer to dealing with those credit card companies head-on.
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. Keep in mind, however, that the debt relief process cannot be availed of until and unless your credit card accounts are significantly delinquent.
Wondering how delinquent?Delinquent credit card accounts are written off by creditors once the 180+ days windows has completed. 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.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.
Maintain Detailed and Descriptive Documentation
The days of verbal agreements holding any value are long gone and especially when it comes to credit card debt settlement.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.Send out the letters with accurate and comprehensive information to clearly specified addresses/addressees. Then, file these letters and other forms of communication in a binder for easy access.
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 Mail That Can Be Tracked
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.Now, you will have pretty good documentation.
Of course, there are specific steps towards settling your credit card debts on your own. Just remember these three tips and you should be alright during the entire process.
These are some specific steps that you can take. For more ideas about how can I improve my credit score you should read our articles about getting the best credit card debt relief help
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