It doesn't matter if the market is up or down, do it yourself credit card settlement is a service that is always in demand. This is because human nature is always the same- when the market is strong people spend to optimistically, and when the market is hurting people don't make enough to support their past habits.
You may be reading this article because you've decided that do it yourself credit card settlement is the best option for erasing your debt quickly and effectively. However, if you're going to do it right, you must realize that it will take a well thought out plan, a change in your spending habits, discipline, and a little know how to be successful.
Your first step is to have a good benchmark for what you are willing to accept as payoffs on your accounts. Shooting for 50% of the original debt (or less) is a reasonable and realistic goal for most people.
Once you know how much you are willing to pay into getting your do it your self credit card settlement plan, your next step is to create a plan. A good starting point is to add up all of your monthly minimums and cut them in half. This should put you on pace to be able to be completely debt free in 4 years or less. If you want to be more aggressive in shortening the time that your plan will take, then simply up the amount that you can contribute to your program each month.
The next step is to create a new bank or escrow account to hold your funds separately from your other monies. This will help you to know exactly where you stand while negotiating your accounts.
One way that do it yourself credit card settlement works is as follows:
1) You stop paying your current debt payments.
2) Instead of paying your monthly toward your accounts, take that money and put it into a designated account.
3) Let this amount accumulate for a minimum of 6-7 months.
4) After 6 or 7 months your accounts should be sold to collection companies who are buying them at 10-40% of their original balances.
5) Using the money that has accumulated in your designated account, negotiate with the collection companies for a discounted payoff if you pay all of it in a lump sum. (This is what takes the time and efforts)
6) Once a creditor has agreed to take a lump sum as full payoff of an account (ie accepting $ 3,000 to pay off a $ 7,000 account) be sure to get an agreement in writing and try to negotiate for a letter of deletion instead of just a settlement letter.
7) Start with your smallest accounts and negotiate and pay off each account using the money that you're contributing each month.
If you follow this general outline for do it yourself credit card settlement and stay disciplined, you should be debt free within a few short years. This type of plan takes a strong conviction to stay with it, but in the end the results of completing your do it yourself credit card settlement plan will be worth it.