It is possible to settle your debt for less than the amount you owe to your creditors. The credit card companies agree to this arrangement in order to avoid sending the account to collections or if the creditors feel that the customer will file for bankruptcy. Hence you can give a call to your creditors and ask for a negotiation.
The first step towards debt settlement is to fall behind in your payments. The credit card companies will not settle your account till you keep making minimum payments on your account. Only when the account is on the verge of going into collections will the creditors consider settlement. You can save this amount for later negotiations.
When you call the card company ask to speak with the supervisor. They generally have the power to settle debt accounts. The card companies can get more through settlement rather than through collections or if the customer files bankruptcy the chances of getting back any money is beak.
Once the negotiations start you must start your offer from 25 % of the total amount. The bank will give you a counter offer which you will have to bring down. Mostly a deal should get settled within 50 % of the total balance.
If you think that you cannot keep you cool during the negotiation hire a settlement company to negotiate on your behalf. They will send a professional to deal on your behalf. They can get a settlement within 40% to 60 % of the balance amount.
Once the verbal negotiation is over get all the details of the agreement in writing. This must include how the payment has to be made, whether it will be a single payment or payments will be through monthly installments.
In current scenario opting for debt settlement is one of the best option for any citizen rather than opting for bankruptcy.