What is so special about 50% reduction of your credit card debt? Well, if you have negotiated with your credit card company in the past, you will realize that securing even the 5% discount is next to impossible.
Even if you are prepared to make a lump sum repayment, the credit card company will insist on full and final repayment. That is only when you refuse to pay will they think of offering a discount.
In such a scenario, to make use of legal solutions to reduce your credit card debts by 50% is a very big thing indeed. Of course, you cannot opt for the solution if you are financially secure and stable. Not only will the credit card company refuse to offer such a deal, you should avoid such a deal because it will have a negative impact on your credit score as well.
However, if you are not in a position to repay your debts properly and if you are very close to bankruptcy, then there is nothing harm in trying and securing a 50% discount. If things work out, you will definitely find it easier to manage your debts. If things do not work out, you can always go in for bankruptcy, which was always on the cards.
The first step that you should take is get in touch with your credit card company, either directly or through an intermediary. You should initiate negotiations and find out whether they are agreeable to a settlement in principle. Of course, you will have to carry out a counseling session and provide a clear indication why you are in need of discount.
Once you have obtained the in-principle agreement, it is time to proceed ahead and thrash out the actual deal. Even if you secure the in-principal agreement on your own, it is advisable to get a professional on the job as far as determining the actual percentage of discount is concerned.
This is because there are certainly legalities and technicalities involved. Nine out of ten persons have absolutely no idea of the contents of a settlement agreement. In such a scenario, a legal and fair solution will be one which is finalized by a settlement company.
You can insist on paying as a percentage of the total amount of settlement obtained. This performance based payment will ensure that you enjoy legal services. Of course, you should also shy away from paying bulk of the upfront fees in advance. Rather, you should wait for the benefits to flow in before paying the fees.