Settling card debts for pennies on the dollar takes cash, patience, and knowledge. This technique is one of the most powerful ways to get creditors and collection agencies to stop calling you and to remove negative items from your credit report. You have something creditors want, and that is money. But, in order to interact with card companies, you must also possess the right communication skills in order to win. Once you master the following tips on debt settlement, you will be able to take your credit worthiness to a whole different level.

1. Credit Settlement - 4 Tips To Prepare for a Credit
Settlement
Settling card debts for pennies on the dollar takes cash, patience, and knowledge. This
technique is one of the most powerful ways to get creditors and collection agencies to stop
calling you and to remove negative items from your credit report. You have something
creditors want, and that is money. But, in order to interact with card companies, you must
also possess the right communication skills in order to win. Once you master the following
tips on debt settlement, you will be able to take your credit worthiness to a whole different
level.
Credit settlement tip 1 - Determine which account should be settled first?
Before contacting the lender, review your report to determine which accounts should be
negotiated. Look for charge off accounts, debts that have been sold to a third party
collection agency and old judgments.
Credit settlement tip 2 - Look at the Statute of limitations on the debt first
The statute of limitations is critical because you may be paying for an old account that has
passed a deadline and is getting ready to fall off your report. Take a look at the date the
account went delinquent and then look at the federal statute. If the statute has expired, it's
time for the negative item to come off of your report. Now, view your outdated accounts
again focusing on the date of last activity. Review your state statute to see if your debt has
expired. If so, the lender can't collect by way of suing you for a judgment, but they can still
continue their collection efforts.
Credit settlement tip 3 - Make the creditor prove that it's your debt first
Right before you settle, write the lender a letter asking them to provide you with written
proof that you owe the money. Ask them to send you the original application bearing your
signature. Federal law requires creditors to provide proof upon request by the consumer.
Give the them 16 days to respond to your request. If they don't write back, send the
creditor bureau a letter asking for a deletion because the creditor can't prove that you owe
the money. Write the attorney general's office in the creditor's state, and let the attorney
general know that the card company is reporting negative information on your bureau
report even though they can't prove that you owe the debt.
Credit settlement tip 4 - Learn what account could be settled
The easiest bills to settle are unsecured accounts like medical bills, credit cards, retail store
cards, personal loans, old collection accounts, outdated judgments, and charge offs. The

2. reason why you can negotiate these accounts is because the lenders have no collateral
against them if you decided to default. Secured accounts like your home and car are almost
impossible to settle since the lender has a lien on the property, but you can settle the
deficiency amount if the car is taken or the house goes into foreclosure.
As you can see getting ready to settle a debt takes time and effort on your part. However,
just by applying the four tips above will prepare you for the negotiation game. To creditors,
it's who has the best skill when it comes to negotiations. Now that you are empowered with
more education, go out there, and settle your bills for pennies on the dollar.
If you want to get the best credit ever, get approved for your dream home, car and stop
collectors from harassing you on a daily bases, then it’s time to take action by signing up for
you free Self Credit Repair E-Class by Clicking Here .Once you sign up, you will receive two
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show “Who Else Wants Better Credit” on blog talk radio every Tuesday at 7:30PM-PST.