If you’ve done any research into resolving your credit card debt, you might have read that some companies are willing to settle your account – sometimes for as low as 40 cents for every dollar you owe. In general, this is because an organization realizes that they may not be able to recover the full amount and they’re looking to cut their losses. Taking you to court is expensive and they might also have concerns that you’ll file for bankruptcy. So, if you’re in a position that you want to work out a credit card settlement in San Diego, check out some strategy tips.

Credit Card Debt Settlement Tips

Settling Before Account Collections: Many credit card companies are more amenable to settlement if you get in touch with them early to negotiate. Waiting until after your account has been placed with their collections department should be avoided. You’re more likely to work out a lower monthly payment or interest rate if you contact the company as soon as you’re having financial difficulties or are unable to pay.

 

Gather Your Proof: If your reason for not being able to pay has to do with a hardship of some sort, you should collect the proof that supports you position. For example, if you’re suffering from an illness or disability, provide medical records or tax-related documents. Gather unemployment documents and termination paperwork if your financial difficulties are due to losing your job or being laid off.

 

Expect Some Negativity: A credit card company stands to lose money if you’re trying to settle for 40 cents on the dollar or a similar agreement. For this reason, you will probably face some negativity. You might even experience insults from the person you speak with about settlement, as they’re often trained to be offensive. It’s important to be resolute under the circumstances and understand that the company is probably frustrated with the situation. Remain firm when negotiating – even when the credit card agents are less than polite.

 

Outline Your Negotiations Strategy: Preparation is essential when you’re attempting to negotiate with a credit card company to reduce or eliminate your debt. Take the time to make a framework of your position and organize your thoughts. Keeping in mind that you may be subject to insults and negativity, you won’t feel flustered or upset if you have an outline to guide you with the points you want to make.

 

Get a Written Agreement: If you do reach an agreement with a credit card company, it’s important to memorialize the settlement in writing. When you uphold your end of the bargain, the company should consider your debt paid in full and report it to the credit bureaus. You’ll have proof in the event that they don’t contact the credit agencies and can have the negative item removed from your history.

 

Credit Card Settlement in San Diego

Under the right circumstances, many credit card companies will settle in San Diego if you approach negotiations properly. Still, discussing settlement can be a complicated matter, so talking with a debt attorney about your situation is a smart move. These professionals have knowledge and experience in handling debt relief, and can help you work out a suitable settlement arrangement.

Call Gamez Law Firm for a FREE consultation to discuss your student loan debt options.  Daniel R. Gamez, an attorney focusing exclusively in debt settlement, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in La Jolla, CA. For more information, please contact Daniel Gamez at 858-217-5051, daniel@gamezlawfirm.com or visit gamezlawfirm.com.