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Written by Phillip Emerson

Before you attempt a credit card settlement, or a credit card debt settlement with a collections agency, you might want to consider some important factors before making your offer. Assuming you're already behind on your payments you'll basically have two options.

If you're still dealing with the card company you can make them an offer of 10% of the amount you owe. At first, they will laugh at you but when you remind them that they'll be selling your "written off" card debt for pennies on the dollar to a debt collector, they may rethink their situation.

Most people would be afraid to call the card company to make a settlement offer of 10% because they failed to realize one very important factor. You are in charge of the situation. True, you may have been forced into this "situation" by this Depression economy, but you're still in charge.

You can explain that you're attempting to make a settlement of 10% because that's all the money you have and you're negotiating in good faith to make your credit card debt settlement. Tell them that you are aware that they will sell your debt for pennies on the dollar when you do not make any more payments.

It does not make good business sense to sell a debt for three or four cents to a debt collector when you're offering $.10 on the dollar. Make sure to explain that you're serious about your settlement offer, you consider it generous and that's all you can afford.

If the card company refuses your settlement offer of $.10 on the dollar, then sells your debt to a debt collector for three or four cents on the dollar then that's their problem. They will get a bigger tax write off by selling to debt collector.

Your other option is to deal with a credit card debt collector but don't worry, the collector is even easier than the card company. Yes, the collector will attempt to drive you crazy using the "psychological" debt collector phone calls but once you learn to reverse the "psychological telephone warfare game", it's easy.

Your are still in control because you know the debt collector only paid three or four cents on the dollar for your debt, so you simply ask the collector if he will accept 6 or 8%. Let the collector know that you're dead serious about your 8% maximum offer.

The debt collector will not be accustomed to dealing with someone who showing a bit of "tenacity" and he will use every trick in the book to try to make you break, but don't fall for his tricks. Don't answer his questions. He'll threaten to garnish your wages, seize your bank account or put liens on your property.

Don't worry you're still in control. In order to do anything that he threatens, he must go to court and win a lawsuit against you. Here's the best part. If you answer the debt collector's letters and demand him to "prove" that you actually owe him money, he can't!

A debt collector can almost (maybe one in a million) never prove that you owe him money in court. They rely on what's called a "default" judgment to win their case. A default judgment occurs when people take no action whatsoever and do not answer the collections letters.

Doing a card settlement or a credit card debt settlement all works in your favor when you know the secret. The secret is simple. You are in control. You can control the situation whether it's a criminal 30% card interest rate, a raging debt collector on the phone or a collection letter.

Most people "lose control" because of fear of the unknown and end up losing their settlement negotiation or they never even attempt settlement at all. Don't let your lack of knowledge or fear be a factor.

Learning how to negotiate with the credit card company, knowing what information you should never give a debt collector on the phone and answering debt collections notices properly will keep you in control of your creditors.

Knowledge is the key to a successful credit card settlement. Learn to control your creditors instead of having them control you.

Visit http://creditcarddebtprotection.com/ and down load the free e book Control Your Creditors to begin educating yourself with the wisdom to stop any debt collector in his tracks. Find out why collectors will gladly accept 10% of what you owe just to get rid of you or vanish altogether.