Credit Card debt Settlement strategy must be followed during the very critical first six months and especially at the â€sweet spot.†Especially since the sweet spot is the best time to get 50-80% off of the discounted debt balances to settle debt and eliminate the credit card debt. The first strategy to use is the one that addresses the very important question of which debt you should settle first. The only thing that is stopping you from settling multiple accounts at the same time is a larger amount of cash. You have been putting money away during this whole process so that you have bartering power when the time is right. Let’s assume that you have saved $3,500 in a savings account that you intend to use for your monthly minimum payment for your credit cards, instead you stopped paying started the credit card settlement process. Let’s say you have two creditors that are ready to settle with you. One debt is for $6,000 and the other is for $14,000. What should you do? Both creditors have offered to settle for $3,500. Obviously, you should settle with the $14,000 to clear up the biggest amount of debt. Always clear up the biggest amount of debt in a credit card debt settlement with the monthly saving from not paying the usual insane monthly payments. RINSE AND REPEAT and you are on your way to eliminate your credit card debt. Make sure to remember creditors will settle for 50-80% off the original credit card balance. Why would your creditors take such lows amounts? Creditors get to the point where they know that you are not going to pay the balance off. They are further threatened by the fact that if pushed far enough you just might file for bankruptcy and then they won't get anything in some cases. Yes, they could turn it over to a third party collection agency but then they are going to lose another chunk to them, as a matter of fact, they may sell your accounts that are past the charge off date to collection agencies for 5 or 10 cents on the dollar. NOW LETS BE VERY CLEAR, we recommend doing Credit Card Debt Settlement if you really have a hardship (lost of job, divorce, medical bills etc.). Although most of the card companies do not ask proof of the hardship to go through the credit card debt settlement, it is morally right to do so. Note all this do it yourself example of Credit card debt settlement is done without expensive debt settlement companies and settlement attorneys. This is Key to properly negotiate your debt and find a final closure with credit card debt settlement.
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