Another Secret to Getting Banks to Settle for 15%

I have good news for any of you who are suffering with credit card overwhelm. You never intended for this to happen, just a series of economic changes have affected virtually every American. Fortunately, there are ways to fix this. In this brief summary I will share with you a tip that will help you ultimately get the best settlements with credit cards.

First of all, settlement is an option in which the credit card company you owe money to is willing to take less than what it owed. Often if you are behind on credit card payments, it is easier to negotiate a settlement. How do you do this? Simply call up the bank and explain your situation.

In this particular case I will share with you, my client owed Bank of America $15K on one business credit card, and approximately $17K on the other. When I first called BofA in September to ask for a settlement, the rep quickly agreed to approximately 20% on both accounts. I accepted this and provided account information to make a payment.

Apparently, the Bank was unable to process the payment and began leaving urgent voice messages. When I called back I was informed that the previous settlement offer had expired.

Fortunately, I spoke with an understanding representative who noted that the payment was not processed correctly. When I asked her to reconsider the settlement offer, I asked is 20% the best she can do? We would prefer 15%, she asked for the contact information of an attorney the client would consider for chapter 13.

This way, she documented good cause for why such a low settlement. After a few follow up calls back and forth, she faxed over approval letters for a settlement of 15% of the balance, payable over 4 installments. This was way better than a 20% settlement payable over 3 installments stipulated in a previous agreement.

The lesson is that a settlement is not always the final settlement which can be much better than the initial one. A bank can make a mistake that can be corrected, sometimes in your favor.

The benefit of this settlement is that you get free of the stress and hassle of an overdue unaffordable debt, you get a fresh start, and can settle your debts honorably by facing them instead of running away. After paying off the debt through a settlement, your credit record reports as paid as agreed, zero balance, and/or settled for less than original balance, all of which are much better than a delinquent unpaid status. Plus you elminate those harassing collection calls and letters which distract you from getting work done and making money.

In my Ultimate Credit System I provide specific scripts and worksheets for you to use that make settlements quick and easy and ensure you get maximum results.