Credit Card Rules: Michelle Obama Said What about Credit Card Debt?

If today you happened to be wondering if Michelle Obama had anything to say about credit card debt or credit card debt settlements, then you haven't been reading the top post in the business category today:  http://business.gather.com/viewArticle.action?articleId=281474981338380. Can the president's wife counsel you on your debts? Forget about it, she can't even get a credit card in her own name! How lame is that? OK, so if you want to settle some of your credit card debt (and prevent it from ruining your credit score, then you're going to need to take some steps to get it reduced.   Sometimes all it takes is to make a simple call to your credit card company. So here we go - reducing your credit card debt, the Michelle Obama-free edition:

1. Get out your negotiating cap - you're going to need it to settle your credit card debt. If your first request is denied, you can always come back with a different amount (whether this is a request to lower your monthly payments or reduce the interest). Start low. It will be a back and forth with the lender until you meet somewhere in the middle. So when you call your lender, give them your lowest offer (let's say about 35% of the debt amount. If that is denied, try 50% and then 75% of your total debt. Your lender will come back with higher offers, but try to negotiate an amount somewhere in the middle.
2. If you opt to go for a lump-sum settlement, make sure it isn't greater than the money you have on-hand, since most settled debts will need to be paid off immediately. The lender wants to get their money right away.
3. Finally you'll want to pay the settlement. Lenders will usually take a check or money order. If you have a bank account at the same financial institution, they can withdraw the amount straight from your account.