If your credit card debts are out of control you may be thinking about ways to reduce credit card debt. There are a variety of debt relief routes which you can take, which include credit card debt settlement, credit card debt consolidation, and of course, bankruptcy. However, there is a third route, which although lesser known, and that is do-it-yourself credit card debt reduction.

1. By Dermot Farrell
Copyright © 2012
http://www.CreditCardDebtSecrets.org
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org

2. If your credit card debts are out of control you may be thinking about ways to reduce credit
card debt. There are a variety of debt relief routes which you can take, which include credit
card debt settlement, credit card debt consolidation, and of course, bankruptcy. However,
there is a third route, which although lesser known, and that is do-it-yourself credit card
debt reduction.
How to Reduce Credit Card Debt
The Do-It-Yourself (DIY) Way!
Looking at the two popular debt relief strategies, of credit card debt consolidation and credit
card debt settlement, although both are effective in their own right, they differ quite a lot
from each other.
The more moderate one is credit card debt consolidation, whereby a debt relief company
negotiates on your behalf, looking for a reduction in interest rates, while the more extreme
route which you can take is credit card debt settlement. With debt settlement the debt
settlement company negotiates for a one off settlement of the debt principal at a
significantly reduced rate.
Both strategies have their appeal, with credit card debt consolidation, the debt savings are
not so good and it takes a long time to clear your debts, however it is practically risk free.
Whereas, with credit card debt settlement, it produces astonishing savings very quickly,
however, it has lots of downsides such as loss of credit rating, tax due on monies saved, and
potential court cases.
Regardless of which method you decide on to reduce credit card debt, the debt relief
company will charge you a fee. In the case of credit card debt consolidation, they will charge
a servicing fee throughout the consolidation process. This can become expensive, since debt
consolidation usually runs over a period of several years.
Whereas, with debt settlement, the debt settlement company only charges you if they
are successful. However, their fee is usually set at around 15% of the money which they save
you. So for example if they reduce 40% from the debt of $20,000, then this comes to a
saving off $8,000 and a fee in the region of $1200.
So there is no question about it, if you opt to reduce credit card debt, without joining a debt
relief program, there are some potential savings. However, if you reduce credit card debt by
the DIY way, there are also some downsides to bear in mind.
What are the Downsides if I Decide to
Reduce Credit Card Debt the DIY option?
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org

3. If you want to reduce credit card debt with the do-it-yourself option, then you will have to
contact your creditors directly, and negotiate with them all by yourself.
It is this lack of leverage which is a potential hazard for anyone who wants to reduce credit
card debt by themselves. Debt relief companies have both experience and an in depth
understanding of credit card companies, their employees understand the methodologies
which each credit card company applies, and they probably have a working relationship with
most of the credit card companies. This puts the debt relief company at a serious advantage
over and above the DIY negotiator.
If a lone credit card debtor contacts their credit card companies, seeking to reduce their
debt, or even to reduce the interest on their credit cards, chances are that unless they
withhold their payments for a long time, the credit card companies will simply ignore them,
or give them some lip service.
And even if the credit card debtor withholds their credit card payments, in order to gain this
necessary leverage, in the process their credit score will end up been badly affected.
To sum up, it’s not that the individual credit card debtor can’t self-negotiate; rather it’s just
that unless they know what they are doing, they will more than likely either alienate the
credit card companies, or they will receive only a token discount on their credit card debts,
or monthly interest rates.
So if I Want to Reduce My Credit Card Debt,
on My Own, How can I Make it Work for Me?
If you want to reduce credit card debt on your own, the first step is to prepare well before
you start negotiating. There is no point in thinking to yourself that you are going to save
on debt relief company charges, only to go out and make a Mickey Mouse effort with the
negotiation process.
Also, unless you are well versed in negotiation and credit card company debt handling
protocol, you will have a difficult time, even if you do apply yourself.
However, there is help at hand under the guise of debt relief negotiation education
courses, which walk you through the stages required to renegotiate your debts. While there
is a charge for these services their fees are fairly low, ranging anywhere from around $100 to
$600, depending upon the level of tutoring provided by the provider.
Of course, these self-negotiation courses will not suit every credit card debtor, because it
must be kept in mind that there is a high level of organizational and negotiation skill
required, which is beyond the skillset of a great many credit card debtors.
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org

4. So, if you wish to take up the do it yourself option, unless you are used to negotiating with
financial companies, you would be best advised to consider a coaching course. Also, if
you take up this option, it is necessary that you have a certain range of aptitudes and skills,
otherwise, you well be better off simply hiring the professionals to negotiate on your behalf.
There is no question about it, it is possible to reduce credit card debt, the DIY way.
However, it doesn’t suit all debtors. If you look into your particular circumstances and take an
overview of your skillsets, then maybe this is a viable option for you to take. Certainly many
credit card debtors do manage to reduce credit card debt the DIY way, maybe it is also your
way too.
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org