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Consider the snowball method of paying off debt. This involves starting with your smallest balance first, paying that off and then rolling that same payment towards the next smallest balance as you work your way up to the largest balance. This method can help you build momentum as each balance is paid off.
The most commonly accepted way work out how much to pay each creditor is to: Work out the total amount you have to repay your debts each month. Work out what percentage of your total debt you owe each creditor. Divide your total based on what you owe each creditor as a percentage of your total debts.
You will normally have to convince a creditor that writing off the debt is in their best interest as well as in yours. Usually, this means showing them why there is no likelihood of them getting enough money back to make it worth pursuing you for the debt any longer.
Confirm that the debt is yours. ... Check your state's statute of limitations. ... Know your debt collection rights. ... Figure out how much you can afford to pay. ... Ask to have your account deleted. ... Set up a payment plan. ... Make your payment. ... Document everything.
With this negotiation technique, you offer to settle your outstanding debt in one big payment, albeit for less than your balance. For example, you might owe $4,000 between charges, interest and fees on your credit card, but you ask the bank to accept $2,500 (your original credit limit) to settle the account in full.