Credit Card Debt Relief:

Here are some debt relief ideas and philosophies from the trenches:

1. Understand your legal rights and responsibilities.

The Federal Trade Commission offers extensive tutorials on its website for individuals facing insolvency. The National Consumer Law Center is also a good resource. You might also want to read the Federal Consumer Reporting Act in full to understand what actions creditors may or may not take with respect to your debts. For instance, if a collection agency harasses you, you can file an official complaint and force the behavior to stop. Over-aggressive collectors may even be held liable for damages.

2. Pay your critical expenses.

With creditors breathing down your neck, you may feel compelled to put your pay-check towards a credit card pay down as opposed to food for your family. Don’t be scared into making bad choices. Prioritize the bills that must be paid, and then worry about your personal debts.

3. Be prepared to negotiate with some creditors.

Figure out how much you’d be willing to pay if your creditor agreed to renegotiate the structure of your debt. Some creditors are willing to negotiate directly with CDF Group.  Keep two figures in your mind: your ideal settlement amount and your minimum settlement amount. Never go below your minimum.

4. Don’t expect sympathy from collectors.

Collection agencies deal with thousands of struggling individuals, and they’ve heard every sob-story in the book. Complaining about the unfairness of your job loss or the ruthlessness of a particular credit card company won’t likely win you points.

5. Keep your eye on the ball.

You have leverage on your creditor because he or she needs money from you. That leverage gives you power. If you wield this power appropriately, you can compel your counterpart to offer concessions. The more specifically and realistically you identify what you want those concessions to be, the better your chances of achieving your ends.

6. Keep meticulous notes of all correspondence.

Every time you get a piece of mail from a creditor, file it. Write down notes from every phone call you have with your lenders. Consider tape recording key conversations (although you may need to request permission to do so). The more thorough your documentation, the more leverage you can have in future negotiations.