My life as Credit Card Debt Relief Agent

April 22, 2010

Author: William M. Davis

As a credit card debt relief agent I sometimes wonder what I would do if I were in financial trouble or one of my loved ones. What would I tell them? How would I guide them through the process? If I had to tell them to do it themselves this is how it would look:

First Things First

First I would help them take an inventory of their financial situation, and let them know how much easier their life would be without a heavy debt load. If they could not make the minimum payments on their bills I would tell them to settle some of the credit card debt themselves and to try to avoid bankruptcy as much as they can.

Settle the Highest Interest Rates First

Then they should settle their debt with the highest interest rates first. This would really help their monthly budget. If you cannot pay extra on the high interest debt I would tell them to get in contact with their creditors and try and negotiate a reduction.

Step by Step

I would have them:

Step #1 – Arrange the debts in order of the one with the most priority.
Step #2 – Then, calculate all possible means of income.
Step #3 – Then assess how much we can afford to pay off each month
Step #4 – Call all the creditors and check to see if any have been sent to a collection agency.
Step #5 – Any debt that has been sent to a collection agency will need to be validated first before payment could start.

Let the Debt Negotiations Begin

Then we would begin to negotiate with the creditors by try to get the interest rates reduce. This would lower the balance on the debt considerably. Next the late fees would have to be dealt with. Both of these are roughly 45% of most delinquent debt.

Transfer Balances

If there are many credit cards with low balances I would consolidate them by transferring balances. Making sure I transferred them to the card with the lowest interest rate.

Watch For Low Intro Rates

But, before any transfers I would make sure the low rate is not just an introductory rate. We would also not cancel any credit card because that would alert the feds that something fishy was going on.

One Step at a Time Aunt Jane

Now it is time to get those finances organized. We would do this by a little self debt management. So Aunt Jane remembers these steps:

• Find out how much you owe.
• Get the outstanding balances of unsecured debt.
• Make a list of all income
• Make a monthly budget
• Find out how much you can pay each month.
• Decide who to pay first. (High interest debt first)
• Make minimum payment on all debt except the targeted debt pay extra on those.
• While paying of the targeted debt do not stop paying minimums on other debt.
• When the targeted debt is paid for of aim at the next target
• Repeat steps until all debts are paid off.