The economic crisis has been a major cause for the overwhelming debt problems spread across the nation. However the overuse and misuse of credit cards had been a supplementary factor. Improper use of credit cards can thus inevitably trap you in the cycle of debts. When this debt gets out of control, the best solution can be to opt for debt settlement with your creditor. The process will help you to get rid of your debts successfully and will also stop creditor harassment issues.

Below are a few negotiation tips you can consider if you want to settle your credit card debts:

1. Estimate your savings before you call your creditors: Before you start with the negotiation process, know your financial state properly. Calculate your savings to know whether the money you have is enough to make a lump sum payment. If you have considerable savings your negotiation process becomes easier. You can call up your creditors and ask them for settlement of your credit card debts. If your initial settlement offer is good, it is likely that your offer will be accepted.
2. Offer a lump-sum settlement amount to creditors: When negotiating your debts with your creditors, offer a lump sum amount as the initial settlement sum. If you are negotiating your credit card debts with the help of a company, you need an initial lump sum amount to start. After you save a considerable amount in your account, the company initiates the negotiation process. Offering a lump sum amount will help you getting a quick approval from the creditor.
3. Suggest an affordable repayment plan: If you are unable to afford a lump sum settlement amount, suggest a repayment plan to your creditors. If your creditors agree on a repayment plan, you can pay off your debts with affordable monthly payments.
4. Ask for extension of your payment term: Extending your payment terms will help in reducing the monthly payments on your account. You will pay an affordable sum spread over a longer period of time. As such your chance of settling your debts improves.
5. Find a reputable debt settlement company: Credit card debt negotiation can also be efficiently carried out through a reliable debt negotiation company. Selecting a trustworthy debt settlement company is a very important task as there are chances of getting trapped with fraudulent companies. It is therefore advisable that before enrolling with a debt settlement company you check its accreditation with the Better Business Bureau (BBB). The accreditation states the credibility of the company and ensures you a scam free debt negotiation.
6. Request for waiving of extra charges: Request the company for relinquishing the extra charges, penalties and late fees. This will help you to reduce your debt amount to a large extent. If your credit card company agrees on this request it will be easier for you to settle your credit card debts.
7. Propose bankruptcy filing: If the creditors do not agree on your settlement offer, your financial situation may deteriorate. Inform your creditors that if they do not agree on the settlement program, you are more likely to file for bankruptcy. This initiative might work as the creditors are aware that with settlement they can get back a part of their money, but with bankruptcy they will be at a total loss. However proposing bankruptcy should be considered only as a last resort. If you use it as a bargaining tool, it might backfire and you may end up paying more than your original debts.
8. Have written proofs: Always retain all the relevant documents of your transaction with the company or creditors. The company can look for documents pertaining to your negotiations. Also make sure that while signing any agreement with the company you read the terms and conditions well and retain a copy of it. Get everything in print and have them duly signed by the concerning authority of the company. This will help you to present your case well without any legal hassles.

Author Bio:

This is a guest post by Kevin Craig who is a financial writer for Oak View Law Group. He has helped lot of debt burdened people with free counseling on debt settlement services. With his advice many are now living a debt free life.

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