Do you have more than $5,000 in debt on more than 3 credit cards? One of your options is to consider debt settlement negotiations.
There are basically two types of debt – unsecured  and secured.  The debt which causes us the most problem is the unsecured debt on your credit cards.
Understanding how we got into this problem and finding ways to resolve the problem is the first step in giving you  a piece of mind.
The credit cards were flexible and easy to use for everyday expenses. But something happened along the way, I started just paying the monthly minimum and my balances continued to grow.  The interest rate  and fees increased on your credit card. That is no longer acceptable because you are drowning in debt.
It may be tough in the beginning to made concessions and accept the fact you have a problem.  But once you understand the problem and the solution to your credit card problem the easier your life will be for you and your family. This allows you to  get started placing the money into a saving on a monthly basis. You will begin to build up the monies needed to pave the way for the debt negotiations settlement process to work for you and your family.
An experienced debt settlement company has the resources and the ability to negotiation on your behalf.  They will work with you to structure a plan that fits your current financial situation.  The way for debt negotiation to be successfully is the consumer faithfully following the plan.  The financial plan may take as little as 12 months or more than 48 months depending on your outstanding unsecured debt position.

Once your credit cards have gone into collections, the fun can really get started.  Creditors and collection agencies can start hounding you and calling at all hours of the night.  If this is the case for you, a game plan for how to deal with them effectively may be in order.  You need to start educating yourself on what a creditor can and can’t do.  You do have protection under the fair debt collection practices act.  Don’t think you have to put up with abusive behavior from the collector.  They may be subject to fines if they are out of line.  Keep track of who is calling you and what they are saying.

1. Don’t talk on the phone to a collection agency. If you get on the phone with them they will try to intimidate you so they can collect more. Remember, the more they collect, the more they make.
2. Send a validation letter to the collector to confirm the debt.
3. Get everything in writing first before you open your checkbook.
4. Keep good records; don’t expect the collector to remember what you had agreed on.
5. Send all correspondence by registered mail.
6. Keep copies of everything
7. If you do call the collector, keep a log of whom and when you called.
8. Follow up a call with a letter.
9. Penalties and interest are typically made up amounts of many added on by the collection agency to increase profits.
10. Time is on your side. The longer you can keep them off your backs, the better settlements you can work out.
11.  Don’t be eager to settle. Take your time. If you are trying to buy a home and you need to have the delinquent account off your credit report, make sure they know about this. Ask them to remove the account from your credit report if you pay them in a lump sum. Remember the collection agency is not your friend, and don’t be intimidated by the creditors.  Usually your worst fears about what can happen won’t. I hope this information will save you thousands of dollars when settling your debts.