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How to Settle Credit Card Debt Yourself + Debt Settlement Letter Included!

Posted by Ruth Adorno on March 20, 2013

On the right hand side of this page click on the twitter icon.  After you tweet this page, we will then email you a copy of the template below.

What if I have a question about how to negotiate debt on my own?

If you have any questions about settling debt on your own then please ask your questions in the comment area below.  One of our debt experts will then answer your question.  This helps the entire community to learn.

To settle a credit card debt yourself, before proceeding with negotiations, make sure the account is at the least 120 days past due. For even more leverage wait until the account that you are negotiating on, gets assigned to a collection agency.

Negotiating with the original creditor to settle a debt, could trigger a credit card lawsuit.

Before starting your negotiations mentally prepare.  Illustrate to the collection agency that you will have no choice, but to file for bankruptcy, if they are not willing to work with your limited funds.

Take your emotions, and lock them in the closet before attempting to settle credit card debt yourself.

Put on a Happy Face and Hide Your Emotions –  Remember, creditors are expecting you to be emotional when settling debt.

Step by Step Instructions on How to Settle

Credit Card Debt Yourself

Step One

You must document some type of hardship letter.  Keep this as professional as possible.  Send the hardship letter to the collection agency, with your debt settlement letter. which we are including an example of below for you to use.

Step Two

Illustrate to the collection agency that you lost the income required to continue paying anything on that account.

Input all of your expenses including groceries, gas, rent, house payment, car payment, insurances and every single expenditure that you can think of on an excel document.  Add up your expenses and net income on this excel document.

Now you have a hardship letter, a debt settlement letter and a detailed budget analysis.

Show the collection agency that you had to cut your grocery shopping down to half of what you were buying two years ago.  Show them grocery receipts.  Have your plan documented with proof.

Step Three

Start your negotiations at 20% of the total debt owed.  For example, if you owe $100,000, offer the collection agency $20,000 to satisfy the debt.

They may come back at you with a counter offer.  If it sounds good, then sit on it, and then accept it within a few days.

The collection agency will probably end up settling with you at around 60%-80% of what your total balance is, if you are successful.  Sometimes you may do better, and sometimes you will do worse.

There is a chance the creditor will sue you and take you to court, which is one of the main reasons why people would prefer to use a professional debt negotiating company to settle their debt.

If you wait until getting sued, to try to join a settlement program, most companies will deny you.  Most debt relief companies will deny a person from the program if they already have a lawsuit on one of their


Step Four

A person may want to give a counter offer if they are unhappy with the first amount that the collection agency is willing to accept.

In your counter offer, explain to the collection agency in writing that your family is willing to give you an extra $__, if they are willing to accept __% of the outstanding balance.  Explain to the collection agency that you have now completely exhausted all means of getting any other funds and that if they don’t accept, then you will file for bankruptcy.

Continue to express to the collection agency that the attorney who you are consulting with is providing you promising news about getting approved for a chapter 7 bankruptcy. but this is something that you are trying to avoid.

Step Five

Don’t agree to anything over the phone, without demanding that it also be in writing.  Require everything in writing for your protection.  Creditors are known to lie and use scare tactics on the phone.

Using the do it yourself debt settlement letter template below will be your protection.

Do it yourself debt settlement

The Downside

The Debt Settlement do it Yourself Option. has a heavy downside!

1.  Creditors are fast to file a lawsuit and sue you.   A creditor is more likely to sue a person if they know that person is trying to negotiate debt on their own.

An attorney assigned by Golden Financial Services will work to get a lawsuit dismissed while on the program.  The debt will then get settled as scheduled.

2.  Using the Golden Financial Services program to settle your debt . allows you to piggy back on the high volume of clients that we have.  Having a massive number of client’s worth of debt to deal with on a regular basis provides our negotiators with a tremendous amount of leverage, where our negotiators can solidify larger discounts for you.

Do it yourself debt settlement will most likely lead to less savings.

3.  In the negotiation department at Golden Financial Services, the negotiators have established relationships and contacts with the different creditor agencies.

With do it yourself debt settlement, consumers don’t have these established connections.

4.  Golden Financial Services uses professional negotiators to negotiate, and there is NO EMOTION INVOLVED.    Creditors realize that it is an emotional process to settle credit card debt yourself.   Creditors recognize that they can scare you by threatening your financial well-being, credit worthiness and by creating potential financial stress.  The Fair Credit Reporting Act prohibits collection agencies from using these tactics, but they still exist.

5.  Do it yourself debt settlement options equal a tremendous amount of work and time.  At Golden Financial Services, we do the work for you!

At the end of the day, by utilizing Golden Financial Services you will save more money, and deal with less stress when it comes to settling debt.

As a company we have the most affordable rates and fees out of any company in America.

We have a tremendous amount of leverage and experience with creditors.

We have a proven debt settlement program track record of success going back since 2004 .

Our partners and partner attorneys are all highly rated and carefully selected.

All this leads to SUCCESS!

Do it Yourself Debt Settlement Letter

Category: Credit

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