Settle credit card debt

If you have some certain amount of unsettled debts last year and you want to get rid all of it this year, you will expect some real challenges that you must move out from your comfort zone. Solving your debt problems might not be an easy task but if you stay focus and devoted some time on it – your personal battle is half won.

Let me tell you a real life story about Chris (not his real name), who had been racking up $51,000 credit card debts from five banks; felt frustrated because of his current financial situation. He managed saved some of his earnings around $1,000 per month in which he usually had this small saving as his emergency funds.

A year ago, his resolution was not to bow his head to his creditors again and he was extremely determined to achieve it.

But one thing that really bothers him – the creditors. They kept calling him during working hours to remind him constantly about his overdue payment.

One year later, Chris able to settle most of his debts and his life in tremendous pain is about to end.

How did Chris settle his credit card debt and deal with such pressure?

How did he do that?

1. Don’t let your debt problems affect your job performance

Bear in mind that you still need to work to pay your bills, support your family and settle your debt. Stay productive in work so that you can concentrate on your work without thinking about your current debt problems.

2. Save everything you can to use for your settlements

This is achievable if you are willing to change your spending habits. Like Chris, you can set up your own emergency funds and save your earnings as much as possible for your own debt settlement. From now onwards, you need to set up a plan for your personal spending.

3. Start negotiating with the creditors and request for a payment plan

You must have the initiative to negotiate with the creditors by telling them your current financial situation. Then you can request for a payment plan that you afford to pay to eliminate your debts slowly.

4. Expect calls from the collection agencies

You cannot avoid the creditors calling you every single day. It can be annoying and you can turn them away by not answering the phone or tell them to call again later if you’re in the middle at work. Make your voicemail or phone answering machine is working at that moment. Start consulting a local consumer lawyer about Fair Debt Collection Practice Act (FDCPA).

Based on Chris’s experience, some of the collectors committed FDCPA violations. Therefore, save the calls on your voicemail or phone answering machine and perhaps sue them for violating the law. If anyone who have violated FDCPA, the debtor will get compensation from the debt collection agency. The compensation that Chris received was diligently used to settle his debts.

By: Jaden J Jones

Tags: Banks, Bear In Mind, Challenges, Comfort Zone, Credit Card Debt, Credit Card Debts, Creditors, Debt Problems, Debt Settlement, Earnings, Emergency Funds, Financial Situation, Focus, Initiative, Job Performance, Overdue Payment, Paym, Personal Battle, Spending Habits, Tremendous Pain