Many credit card holders do not know that their credit card debt is negotiable. Almost all the banks and credit card providers always convey their messages in the reminder letters that all the outstanding balances on the card statements must be PAID IN FULL.

Even when the debt collection agencies call up the debtors, they also request the debtors to clear off their debt as soon as possible in full amount. However, in reality, especially since economy crisis in 2008, it seems that most of the debts are entirely negotiable.

In order to write off partial of your debts, you are advised to apply the most economical way, i.e. writing a debt settlement proposal to your creditors on your own. In order to reduce your financial burden successfully, here are some useful tips I would like to share with you.

# Tip 1: Get the right timing to submit your debt elimination proposal

You can’t simply submit your settlement proposal at anytime because if you do it at the wrong timing, your request will be rejected. The best time for you to propose settlement offer is when your past due is over 3 months but less than 6 months. This is the best time to convince the creditors to accept your proposal.

If you write in too early, say less than 3 months, the creditors do not really trust that you don’t have the ability to pay back. They may think that you have intention to take advantage from them. Hence, in order to have a favorable settlement, make sure your debt is at least 90-day old.

# Tip 2: Put your request in writing in a systematic way

Before you start writing your settlement letter, you are reminded to plan your content carefully. You need to provide your personal information and your account details in the first paragraph. Then you need to inform your creditors about the hardships you are facing in a brief manner. After that, start proposing your debt settlement plan and finally, request your creditors to remove all the negative items from your credit file.

# Tip 3: Be extra careful in conveying your messages

When you put your points in black and white, the letter serves as strong evidence. It proves that you have intention to settle your debts. Hence, you need to make sure that you have the ability to pay accordingly, i.e. pay according to your proposed settlement amount. If you don’t have sufficient fund, you MUSTN’T write the letter because you will be required to bear legal obligation with the written proposal.

# Tip 4: Show your commitment and sincerity in your proposal

In order to convince your creditors to accept your proposal, you need to show your sincerity in paying off your debt. Write a specific date which you can settle your debt if agreement is obtained from your creditors. Besides, let the creditors know how much you have on hand. Inform them your financial “limitation”.

When you have accumulated a big sum of outstanding balances in your credit card accounts and you know you have lost your financial ability to pay back, don’t feel ashamed to communicate with your creditors. You should take the positive approach to solve your problem.

Let them know your financial difficulties through letters and obtain their approval to write off your credit card debt. The whole process may involve a few negotiation letters. Don’t expect to overcome your debt issues with just one letter. Hence, you need to “sharpen” your writing skill to achieve good result.