Handling your credit card debt is not as easy as it sounds to be and it is one of the nerve-wracking questions in today’s times because all of us seem to have more credit cards than we need. You can try by going in for an agreement with the creditor to handle the debt by paying in some of the indebted amount and you will be surprised to learn that such agreements will not prove to be difficult if you are prompt at your credit card debt summons and you should also be extremely careful about the debt dispute letters, debt verification letters and the debt validation letter as well.
Firstly, you need to understand that going in for the settlement of your credit card debt may not actually offer you the financial freedom which you have been looking for. If you think that the settlement is going to be the best solution to your problems, then you are totally mistaken. There are several twists that are associated with settlements and if you are trying to clear off debts through this process, then you are sure to be affected by 1099 income tax problems which means that you will be affected by the IRS tax that is actually written off from the principal amount. Also, always remember that settlement can very well affect your credit score and whenever you agree for a settlement, do ensure that the bank will report your account only in the current and timely fashion else you can decide not to go in for the agreement as well.
Also, how you handle the dispute with your creditor plays in big role regarding your credit card debt and you need to convince them that settlement is the perfect solution to all your problems. In such a scenario, your creditors must be prepared to tag your account as a non-collectable one. You can draft a good validation letter to your bank and this will actually act as a warning to your creditors that you are considering settlement as a serious option. However, it is important to seek advice of Your Personal Financial Mentor in such circumstances as he can guide you what’s the best possible action in a particular situation you are facing.
The purpose of adopting the straightforward approach in terms of your credit card debt is to have the full details regarding the entire process which will unfold regarding the settlement of your debts. You need to adopt great perseverance in this matter and although the process sounds difficult, yet it is quite attainable with the right tricks and strategies.
Categories: Credit Cards