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How to Settle Credit Card Debt On Your Own

Are you finding yourself in a financial predicament and wondering how to settle credit card debt on your own? Read this. How to Settle Credit Card Debt On Your Own While there are many companies out there that promise to settle your debt for as low as 50%, be wary of falling into their advertisement prey.  While some legitimate companies will indeed settle your debt, they often charge high percentage fees for their work.

Also, since you are not dealing directly with your lender, it will often be put on your credit as a settlement which can damage your credit history for years.  Learning how to settle credit card debt on your own is the best way to financial freedom.

How to Settle Credit Card Debt On Your Own: Research Options for Your Specific Situation

First of all, in order to know how to get rid of your own credit card debt, you must be willing to research all your options.  It is imperative that you document everything that transpires throughout this process.  Careful documentation and a lot of communication with your creditors is key to successfully settling your debt.

You will need to initially write a hardship letter. This is simply a letter stating to the creditor that there are circumstances that have not allowed you to pay your balance. Such circumstances might include, but are not limited to, divorce, loss of job, long term illness, or disability. You will need to send this letter to your creditors, but always remember to keep a copy for yourself for documentation purposes.

How to Settle Credit Card Debt On Your Own: Contact Your Lender

Once you have stated your hardship, contact your lender to negotiate the terms of your payments. If you have not been delinquent on a payment yet, they may work with you to set up a payment plan, or to lower the interest rate.  Always remember to get these terms in writing.  Documentation is the key to success!

If you have already been delinquent on your payments for more than 90 days, the lender may be willing to settle with you.  You will need to negotiate an amount that you are able to pay.

Always ask how it will appear on your credit.  If it is considered "paid in full" on your report it will not damage your credit. However, if it is reported as a settlement it could seriously hurt your credit score.


Though learning settling credit card debt on your own can be difficult and time consuming, it is often the best way.  Always research your options and document everything and you can be successful!

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