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If you ever owe more on credit card than you can possibly afford to pay, then you wish you could negotiate for a settlement with Card Company. In the stated settlement, you have to pay some amount, which is less than the original one and company agrees to accept that said amount. You can easily avoid trouble and expense of just going to court and protect credit rating at the same time. You might wish to conduct negotiations in writing to just avoid any form of misunderstandings. Both these sides are protected by just putting final settlement write in writing. You can check out the debt settlement ratings before getting hold of the option now.
Writing a letter to offer a settlement
If you want your business to stay up and running, then you have to write a debt settlement letter to the credit card company. You can decide on what you can easily end up paying the firm first. Before even settling credit card based debt, you have to decide on this amount to afford. Review all the debts you are in and compare those with regular income and other funds you have available.
- Using your present credit report, you can help make the decision. Many people might focus on credit score, but the credit report is more than just a basic score. If might offer a list of the outstanding debts that you currently owe and then open accounts you have. Check out the ongoing collections working against you. These factors will help you settle a debt.
- You get the chance to see credit report for free and get some more information on that. If you need it, you can get a copy of credit reports from three major reporting bureaus, like Experian, TransUnion, and Equifax. These websites will always provide information about procuring copies of reports.
Have to make one reasonable offer
In case, the offer is small, then the company is not going to accept it. On the other hand, if the offer is way too much, then you might run into a risk of not being able to just make the right payments. You can always find the right number in the middle that you always believe you can easily justify. You can always offer less for the older debts. The company is here to believe that older debts are less collectible generally. So, they are always more inclined to just accept a lower offer. The reasonable offer might be somewhat around 15 to 25% of the debt, you own.
The settlement might impact the credit score
You should remember that a settlement will always affect the credit score in a rather negative manner. Anything apart from on-time and full payment will definitely hurt score at some point or to some extent. However, always remember that a settlement is always better than just waiting until the account might go into collection. It will often show that you can take some responsibility and even get the chance to address an issue in a direct manner.
Addressing the letter to the proper office
You have to work hard to come across the office of credit card Company, which handles settlement offers. You can easily get the chance to discover it by checking out about the company online or just calling customer service number on the back of a card. Whenever you reach anyone at the company, make sure to state that you would like to settle an offer for the debt and ask an address where you should be sending the settlement letter. You should further ask if you need to address a letter to any particular individual. In some cases, you just need to write to the collections office, but there are some companies where you might refer to a particular individual.
Identify the discussing amount
You have to clearly identify the amount that you plan to discuss there. Right at the top of your settlement letter, just below the address, you need to state the account number. In case, you have over one account with the institution, it is always vital to state clearly the account that you plan to settle in.
Be sure to explain the predicament
You should not get into any kind of emotional drift about problems in your life, but you might want to explain the reasons for settling the debt. It can always help your case in the best way possible only if you can get a reference to a particular cause like divorce, accident or anything else that you won’t repeat in future. If you have overspent simply, then the company is noted to be less inclined to this settlement as there is no assurance that your spending habits might change in near upcoming future.
- For an example, you should begin the letter by stating the cause of the repayment failure and then make your way to the conclusion of not able to pay the credit card bills. Make sure to write that you are hoping for a settlement help from the company to come up with a realistic amount you could pay.
- A proper explanatory letter for such a settlement case can always help you with some of the future lenders too. Make sure to keep one copy of the letter handy and be prepared to just share it when you get the time. Some of the potential lenders will be thoroughly concerned when they get to see the settlement on selected credit history. But, once you have the explanatory letter by your side, it can lend the context well.
Remember to state offer clearly
For the perfect settlement letter to Credit Card Company, make sure to state offer in a rather clear manner. You can always provide a precise amount statement you are planning to pay. You must also make it quite clear whether you are suggesting for that onetime payment or looking for the payment plan for various months. In any way, the session will be acceptable, but you have to clearly mention the outline of your offer well in this regard, and get some positive results now.
Author Bio: Marina Thomas is a marketing and communication expert. She also serves as a content developer with many years of experience. She helps clients in long-term wealth plans. She has previously covered an extensive range of topics in her posts, including business debt consolidation and start-ups.