If you are drowning in credit cards with no way to pay your bills you may want to consider debt settlement
. Debt settlement should be a last step before bankruptcy. If you would like to learn more, then read on.First try debt validationBefore you offer a settlement, you should first attempt to validate the debt. This is where you make the collection company prove to you that they own the debt and are legally entitled to collect the account. Send them a certified letter stating that you would like to get a copy of the original contract, a complete accounting and a contract between them and the original creditor that shows that they are entitled to collect the account. If they cannot provide you with this information, they must seize all collection efforts and remove the account from your credit bureau.Check the statute of limitationsThe statute of limitations is the time that a company can use the court system to collect on an account. The statue of limitations varies by state, but you should check your states statute of limitations prior to offering a settlement.Begin debt settlement negotiationsIf you are not able to remove the account from your credit file through debt validation, and the statute of limitations is still in effect on the account, then it is time to begin debt negotiation. You should call the collection agency and get a feel for where they stand. You want to get their mailing address when you call because negotiations are best handled in writing. This provides you with the documentation that you need and prevents emotions from playing into the negotiation process. It also prevents the creditors from backing out from a verbal agreement that they made.How little a company is willing to settle for depends largely on your ability to convince them that you can and will file for bankruptcy. If they believe that you have the ability to walk away without paying anything, they will be more than willing to negotiate.It can take anywhere from a month to a year to reach a settlement agreement, depending on how quickly the lender is willing to move. Don't forget - get everything in writing before making a payment. Certified mail is the preferred method for all communications.