In this economically challenged economy where many have lost jobs a credit card debt is a serious concern.
There are different strategies which can help the customer come out of his debts.
One which has become very popular amongst the debtors is debt settlement.
In order to proceed with the debt settlement process the customer need to follow a few steps.
1.
Do a financial analysis: A customer needs to analyse his finances before he can decide on the debt relief strategy.
A clear figure of the total debt amount and monthly expense will help the customer know his present financial condition.
A difference between the income and the monthly expense will tell how much money is left with the customer to pay off his debts.
2.
Are you eligible: The customer has to have at least ten thousand dollar in unsecured debt in order to take advantage of this debt relief method.
3.
Who will negotiate: The settlement process can be negotiated by the customer himself or he can hire a settlement company to represent him.
The customer has to understand that the amount of relief entirely depends on the persons negotiating skills and this negotiation will be purely base on finance and legalities.
Hence if the customer is not very confident of his negotiating skills he must take the assistance of a professional settlement company.
4.
Start the negotiation: When you start with the negotiation the offer must actually start from low so that the debtor has room for negotiate further.
The debtor or his representative can start by offering 25% of the total debt amount.
But keep the maximum amount in mind.
A good mediator can get a settlement within 40% to 60 % of the total debt amount.