Negotiating credit card debt yourself can be a challenge, but it can be done. If debt settlement is the debt relief option you have chosen, negotiating the debt yourself is a wise decision. Find out everything you can about credit card debt settlement and how it can affect you.

Because debt settlement companies are not nonprofit and they are in this business to make money, make sure you do your own research first. Persuading you to see the outcome their way is the goal of a debt settlement company. They will also charge you a fee that will most likely be a percentage of the amount of money they saved you on your credit card balance.

Having the money available at the time you are negotiating is the best way to approach debt settlement. Now I realize this is much easier said than done in many cases, but doing this will give you a lot more bargaining power. Address your accounts one at a time, and if possible keep making minimum payments (unless they are already charged off) on the rest of your accounts. Until you have the money to settle the account, try to keep them as close to current as possible. If you stop paying your credit card debts, there is a possibility the lender will sue you for what they are owed.

Negotiating over the phone is best and then follow up with an email or a letter with the agred upon terms of the settelement. Many individuals include in their terms that acceptance of the settlement includes removal of all negative credit history and they also include a statement saying the terms of the loan were satisfied. I guess it does not hurt to try to get this, but having worked for a credit card company, I don’t see this happening. Unless your credit history was actually reported incorrectly, most credit card companies will not revise it.

Be aware that debt settlement does impact your credit negatively and the amount of the debt that is forgiven will be considered income and the IRS will expect you to pay taxes on this amount. There is a lot to consider when you are contemplating do it yourself debt negotiation.