Negotiate a Debt Settlement

Has anyone had an experience with trying to negotiate a settlement themselves with unsecured credit cards?

I need to hear from people who have actually had success in doing this on their own,and I need to know step by step what to do. This way I wouldn't have to pay a company to do it. How would I get ahold of the list that creditors go by to tell you how much each credit card company would be willing to settle on?I know that settlement companies have such a list. On one hand it would be great to have someone handle all the details and do all the communicating with creditors, but on the other hand I would like to save on the fees they charge, and put that money on the actual debt, but I wouldn't know how to go about getting the best settlement without help. Please answer only if you have actually done this on your own, and know how to go about it, and also I would need to get a statement from each creditor saying the debt was settled or satisfied after agreed amount was paid. How would I go about that ? I need to know what I should do.

Public Comments

1. Get all of your credit card statements, the last one only, together. Call each of the credit card companies and ask to speak with the credit manager. Ask him/her what is the settlement amount for the debt. Don't argue, just tell them you are trying to get back on your feet and have little to apply to the outstanding debt. They may, or may not, offer you a set amount to settle. It is their option. Some will, some won't and you move on. There is no such thing as a 'best settlement' and the settlement companies don't have any special Get Out Of Jail Free cards. You can do this yourself because not all creditors will settle, it just means asking them yourself. Understand, most times when they offer you a settlement amount, they are expecting the full settlement payment in 2 weeks. Can you have it because calling them to say 'oh, I don't have it right now' will only make them determined to get the full amount or continue their collections. If you are offered a settlement amount, ask them to send you a coupon to send with your payment. Most offer this anyway, but some will just tell you to send the payment - Don't You Do It! They will later claim 'oh, that was a payment towards the full amount'. Wait for the letter/coupon or whatever they send you in writing with the settlement amount on it and only then send your payment.
2. first, find out all your credit card companies that you owe, second, call them up and say your representing "the debtor" which is you, find out from each what the principle is and what the interest amount is. You would have to pay each creditor in a lump sum amount and make an offer. Then get the creditor to fax you a letter stating they agree to take this amount of $$'s as settlement in full. You will only have appox. 10 days to pay that off, i suggest overniting it fedex so you can have a receipt it was delivered. The main question for you is, are you currently past due with this debt. Here is the real tricky part- if you settle in full, you must claim it on your income tax as money earned, depending on what state you live in, an amount would be considered a part of your wages for the year. Good Luck