Having substantial credit card debt can create financial stress for individuals and families. Not to mention how much it can impact your credit score and potentially dig a deeper hole in your finances. What many people don’t realize when pursuing credit repair options is sometimes you can negotiate your credit card debts. Here are some of the top strategies to consider depending on your credit card debt situation.
Understand Your Debts And The Amounts Owed
The first step is to fully understand the debts you have and how much money you owe. Perform a breakdown of what you spend your money on with the exact amounts calculated. The more educated you are about your spending and your overall financial situation, the more you’ll be able to explain to credit card companies why you need to negotiate.
Learn The Different Types Of Debt Settlement
As credit repair experts explain, there are three different types of debt settlement:
- Hardship agreement – this agreement is used when you have a temporary financial hardship, like job loss or an unexpected medical emergency.
- Workout agreement – this agreement involves lowering your interest rate, but maintaining the amount of debt you have.
- Lump sum agreement – this agreement can settle your debt for less than you owe if you provide the negotiated amount in one lump sum.
The type of debt settlement agreement you pursue with credit repair experts depends on your current financial situation and your financial goals.
Negotiate Debt Settlement Terms
Everything is negotiable when it comes to credit card debt settlement. During your negotiations, you must be realistic or the credit card company won’t take you seriously. Working with credit repair professionals to develop a negotiation strategy can give you confidence when making the phone call. Any type of debt relief is better than none, but you also don’t want to leave anything on the table that could potentially help your finances.
Work With Credit Repair Experts
Working with credit repair experts is arguably the most effective first step to take when considering options for credit card debt settlement. These professionals have worked in many different situations and know the most effective methods for negotiating with credit card companies.
Core Credit Solutions offers the best credit repair in Los Angeles for customers who need it most. Having significant credit card debt can put a strain on your family, so exploring options to relieve some of the debt can be beneficial in many ways. Our team is ready to help pursue the best options for your situation, so contact us today to learn about our services.