Imagine Your Relief at Getting Out of Debt - Here's a Settlement Success Story (20 cents!)

In this challenging economy, many businesses and individuals have become way over their heads in credit card debt. It can feel hopeless and stressful at times knowing you have more debt than you can possibly afford to pay off especially due to economic changes.

some think the only resort is bankruptcy, or possibly consumer credit counseling.

Fortunately, there is a simple way to get your credit cards settled for a fraction of the balance.

One of my clients has a $15,000 and $17,000 business credit card with Bank of America. Due to business collapse he has not made any payments for several months...the bank usually has 180 days, if an account has not been made payments on within that time frame, it goes to chargeoff and collection.

The key is to get the account right before it goes to chargeoff. So I called up Bank of America...I felt nervous at first. I was afraid the banker would yell at me, or humiliate me or intimidate me.

I called up the number on the back of the credit card. After I verified the account information, I asked to speak with someone about settling the account. I was pleasantly suprised with how pleasant the banker I called up really was...

I simply stated "look, we never imagined the economy would turn like this and make this account unaffordable. We would like to do the honorable thing instead of declaring bankruptcy. Please let us know what are the best settlement options for the account."

Then I kept silent.

She plugged in her numbers. After a just a few brief moments, she announced her number. She would settle the accounts! The $17,000 account for $3,600 and the $15,000 account for $2,800. Better yet, we could pay over 3 monthly installments!

The woman seemed extremely sympathetic to the plight of small businesses, who are the backbone of the new economy. She also regretted that due to new OCC guidelines that BofA couldn't offer an even better settlement. Apparently before the "Tarp" money BofA could settle for even less, as low as ten cents, and spread payments out over 6 months.

Still, this solution seemed reasonable as is. So I asked her to fax it to me in writing.

Here's some advice:

1. Call up the credit card companies an ask for settlement offers. The worst case is they say no.
2. Keep persisting and insisting on a better offer. Don't give up.
3. Document your conversations and get their settlement offers in writing.
4. Do ask to make sure your credit is unharmed upon settlement, if possible.

Good luck! In my VIP million dollar rolodex I include the name of the representative at bank of America who provided this settlement. I also include the name of a local company who will handle all these accounts for you without your involvement--this can save you time and free you up on rebuilding your business and pursuing your exciting profitable ventures.