Are you falling behind on your credit card payments? What are the financial solutions you can think of? Is there any method to reduce your total outstanding balance? In my personal point of view, I will consider debt settlement.

What are the important steps involved? Let me show you.

• First thing first, stop making payments

You may think that it is a crazy idea not to make payments as it will hurt your credit score. However, it is essential for debt settlement. In general, creditors will only work with their debtors if the debtors can prove that they are not able to pay their debts at all for the duration of 3-6 months.

• Secondly, contact your creditor

Inform your creditor about the financial hardship you are facing. At the same time, convey a clear message to them that you have intention to settle your outstanding balance. Propose to them a settlement amount which you can afford to pay. The negotiation process may take some time and it involves offers and counter offers.

• Thirdly, send a debt settlement proposal by registered mail

For documentation purpose, you are required to send your written proposal to your creditor by post. The letter will act as an important reference if there is any dispute.

• Fourthly, get the debt settlement agreement in writing from the creditor before sending a debt payment

After submitting the letter, you need to follow up with your creditor for an official agreement. Make sure you have the agreement on hand before making your payment.

• Lastly, send your payment to settle your debt

You are advised to send a check or money order to your creditor. Never ever allow your creditor to access your personal bank account. This is to prevent them to change their mind on the settlement arrangement.

Are you aiming for a successful settlement? By following the steps above, you will be able to achieve it.

For more information about debt settlement solutions and debt settlement companies, visit DebtSettlementPoint.comm.

Article Source:http://www.articlesbase.com/credit-articles/how-to-obtain-a-discount-for-your-credit-card-debt-1780094.html