Which credit card do I negotiate first?
I am in a situation where I will either file bankruptcy or try debt settlement. I have some larger balances credit cards and some with only 2 and 3 thousand dollar balances.
Which accounts do I settle first?
I may be able to avoid bankruptcy with debt settlement but which credit cards to negotiate first?
The most intelligent use of your funds when settling credit card debt will generally be resolving the accounts that you get the best percentage reduction from first. You will often(though not always) want to get the biggest bang for your available dollar.
Each of your creditors has different policies when settling. Those policies can be different for different types of accounts and balances, even with the same creditor. Having said that, depending on how long it is going to take you to settle all of your credit card or collection balances, you will also need to adjust your strategies if you have creditors that are more likely to sue than others.
You have to adjust for a credit card debt that may get placed with outside collection agencies earlier than others. The state you live in can also be a factor in how you prioritize which accounts to settle first, second, third etc.
Negotiate credit card for less comes first.
Allow me to lay out a common example using some of the nations largest credit card banks. Negotiating settlement with Bank of America on a credit card with a balance of $12,000.00 can be targeted for far less than 50%. But, say you also have a Capital One Credit card to negotiate, and it has a $6,000.00 balance. Capital One settlements are generally not nearly as low as settling with Bank of America, but Capital One sues to collect credit card debt way more than BofA. Using your available funds to settle the credit card with BofA, while still limiting your risk with Capital One can prove critical to your success with your negotiations.
This all may sound a bit complicated, but it isn’t. Not when you have access to to all the resources and debt relief on this site. You can get help with determining what your creditors generally will accept as settlement in full, and when the best offers are likelier to get approved.
You also have access to debt negotiation experts that can couch you through settling debts on your own, and who can also provide full service debt negotiation.
I read the little detail you provided suggests you are looking at settling the credit card debt on your own. That is great! You can and should! This site is designed to assist you in doing your own settlements and with ongoing support you need to assure you are not leaving money on the table (getting the best deals). Use the comment section of all the articles to get help with navigating and adjusting your strategy to the many twists and turns that can happen along the way. If you need someone to jump in and negotiate a deal on a tougher credit card debt for you, there is help available.
Post details about the accounts you are looking to negotiate and settle in the comment below and I can offer estimates and help you target who you will settle with first, second, third…. Any reader with questions or concerns about how to prioritize your negotiations and settlements can post below and receive feedback.