The case was pursued for a long time before it was declared as bad debt in your creditor's records.
Now that you are recovering from a financial situation, you would like to consider a possible settlement to improve your future credit rating.
You might be surprised that there is still a way to improve your credit report and eliminate credit card debt formerly written off as bad debt.
It is easy to eliminate credit card debt when you have an intention for repayment.
The best way is to bring on board a debt settlement company that can help you with your negotiation process with your creditor.
This process doesn't only include negotiation but also is based on the company's skills to find out the lowest payment possible through a bidding process.
Ideally this involves initiating the talks with the creditor through letters.
This letter is an announcement for your creditor that they have been hired by you for official representation in this pay-off deal.
This letter should also mention that all collection calls and possible harassment should be avoided to further the process.
After your profile is established with your creditor, the negotiation process begins.
Most creditors are ready to settle between 40-60% of the outstanding amount, depending how well your debt settlement company projects your case of financial hardships and can feel the deal closing figure.
Once this is decided you can either pay through lump sum or over a regular period of time.
Normally when settling a bad debt they prefer upfront payment of the entire decided amount.
But since it has already been decided as bad debt and has been written off the active credit records, they might also agree for partial payments.
Two most vital aspects of such a deal are: 1.
You must honor all the dates and amounts agreed upon and mediated through debt settlement company and further more you have to understand that in case of any default, the entire deal is considered null or void and the creditor than has full rights to proceed for a legal action against you.
You must also be prepared that there is a cost that is going to incur to compensate your settlement company.
This amount will be apart from the agreed amount to clear bad debts.