If you’re debt right now, you’ve probably been taken for many rides from many different debt consolidation companies or offers in the mail promising you that they can cut your debt in half within 24 hours.  If you’re like me and the rest of the world, it’s sometimes hard to believe these offers because as the old saying goes, “If it sounds too good to be true”, it probably is.

Settling credit card debt by yourself isn’t hard at all.  In fact, I’m going to give you some very easy pointers on how you can get rid of most of your debt.  As long as you take action, these pointers can help you out tremendously.

Settle for less – When first start off, I want you to think of this saying, “settle for less and nothing else.”  Depending on how much debt you have, this will depend on how much the credit card companies will knock off your total bill.  Say you’re in $40,000 in debt.  You’ll have a better chance to get that knocked down to $20,000 instead of being $1,000 in debt, where you probably won’t get a long of swinging.

What you have to realize about debt consolidation companies is that they will do the same things you’re going to do but they are going to tack on fees on top of it.  Say they are able to knock off 60% of your debt.  They will tell you they were able to knock off 50% but they will keep the additional 10%, etc.  This adds up and this is how they stay successful.

Are you past due?  I want you to look at your statements right now and if they aren’t a half year or older, you’re not going to get much luck with the companies.  You’re going to want to start calling when your bills are at the 6 month past due mark.  Companies generally won’t deal with those that are up to date or are only a few months behind.

Start calling.  If your bills are more than 6 months old, you’re going to want to call up the credit card companies and ask them if they will settle for less.  Most of the times they will.  If you’re not paying your bills, they are taking a hit on your account and are writing it off.  They would much rather have something rather than nothing.  I guarantee that you can settle for 50% or even more depending how good you are. 

This process if very simple.  Call up the credit card company, tell them that you won’t be able to pay it off in full but you can afford $x.  See waht they say.  If they won’t take it, hang up and keep trying in the future.  If it works, don’t pay over the phone!

Get it in writing.  Once you settle for what you want, ask for it in writing.  Never settle over the phone.  You’ll always want some sort of proof from the credit card companies so that if anything happens in the future, you can show them that they sent you this.  Most of the times you’ll be okay but we need to play it safe just in case something happens.

Send in the money.  When you finally get that letter in the mail, you’re going to want to make a copy for yourself.  When you send in your check, write down your account number as well as make another copy.  Make sure that you send this via certified mail so that you know they got it.  When you send it certified, make sure you get a receipt as well.  You’ll want all the evidence you can get.

Settling your credit card debt on your own isn’t that hard.  Take some time, make some calls, and make sure you get documentation.  If you can do this, you’re on the right path to financial freedom.