Can I Do It Myself,

With the way the economy is today, it is no wonder that people with credit cards have maxed out the cards. They are left with little to no money to work with to pay off their debts and they are getting buried with late fees and finance charges. In some cases credit card companies will send settlement offers to people to try to clear off the debt. If you talk with the companies directly you may be surprised as to what you can actually get. But, can you settle your debts by yourself,

The first thing that you need to do is get all of your credit card in order and get all the account info for each card: contact number, account number, amount owed. By seeing exactly what you can afford to put on each card you will have a starting point to go with for paying off all of your cards. The next thing you will want to do is write down what you want to say. This will help you to stay on track when you talk with their representative.

Anytime you speak with the creditors about settling the debt, you want to ask for the offer in writing. This way you have a written record of what was offered. You can expect to get offers in the amount of 25 to 35% off the total amount due. If you want to learn how to negotiate with the creditors you will be able to pay off your credit card debts by working out a settlement on your own. However, if you don't want to settle your debts by yourself there are a number of debt negotiation services that can help you get your debt settled for a much less amount then you owe with a reasonable fee.

Get your credit report and score. You can get your credit report and score from one of the three major credit bureaus: Equifax, Experian and TransUnion. Their websites are located in the Resources section. Understand the FICO score. The Fair-Isaacs Corporation's FICO score rates people on a scale of 300-850,with 850 being the best and 300 being the worst possible credit.

A score below 600 means it will be difficult for you to get a loan with a decent interest rate, and a score below 500 means it will be difficult to get a loan at all. Examine your credit report. Check for outdated information; for example, federal law says bankruptcies can only be included on your report for 10 years, and closed credit card accounts for five years.

Also, contact the credit bureau about any incorrect information on your credit report. Once the credit bureau has been notified, it may take 30 days before the change is noted on your credit report and score. If the changes don't appear, contact them again. Pay your bills on time. Being late on credit card or loan payments counts against you on your credit report.

Once you are up-to-date, that will be reflected in your credit report and score the next time the credit card or loan sends information to the bureau--usually at least monthly. Mange your credit-to-debt ratio. Your FICO scores takes into account both the amount of credit you have available and the total debt you have accrued. You can raise your credit score by lowering your total debt.

A good rule is not to owe more than 10 percent of your credit limit. Your total debt amount counts for 30 percent of your credit score. It may take a a month or two for all the changes in debt amounts to be counted on your report and score. Refrain from opening several new accounts.

You may think the more credit you have the better, but the FICO score takes into account how long you have had various types of credit. Long credit relationships are good for your score, if they are paid on time, but several new open credit accounts could act as a red flag. A sudden opening of several accounts can affect your score immediately.

To consolidate debt is a great idea with a trap built into it. The technique described here helps everyone in debt, but if you have an ongoing credit card debt you desperately need this article. To consolidate debt is a great idea with a trap built into it. The technique described here helps everyone in debt, but if you have an ongoing credit card debt you desperately need this article.