1. Calculate your present debt amount.
2. Analyze the nature and age of your debts.
3. Know how a Credit Report is like with the Sample Credit Reports.
4. Get your credit reports from the credit bureaus and analyze.
5. Check whether your account is still with the Creditor or turned over to the Collection agency.

   Try to settle the secured debts first in order to avoid repossession of your assets.

1. Contact the Collection agency by letters & not phone as they may behave badly over the phone.
2. If you need to call them always keep the name & direct phone number of the Collection Agency Representative whom you are talking to.
3. Send a debt validation letter & accept a reply only when it contains the following
   • Proof that they are assigned to collect the debt by a creditor.
   • Detailed payment history, starting with the original creditor.
   • Copy of the original signed debt agreement or credit card application.
4. If the reply is not satisfactory, inform them that they are violating FDCPA, section 809 (b) and they need to remove collection listing from your credit report. Otherwise you may sue them.
5. If they send across a satisfactory report then the first thing that you need to do is to try contacting the Creditors & request them to pull your account back from The Collection Agencies.
6. If you have enough money offer lump sum payment to the Creditors.
7. If you don't have enough money, make them aware of your inability to pay-off & offer them an alternative payment plan.
8. Negotiate with the Collection Agency with a cool brain.
9. Avoid sending cash and make the payment in such a way that you get a receipt. Don't forget to mark your envelope as "payment enclosed".
10. Don't miss payments and make sure that your check doesn't bounce while paying the collection agency.
11. Try to clear the account in time so that you don't have to deal with the Agency again.

1. Take a note of the following first:
   • Learn the ways of Contacting your Creditor.
   • Teach yourself the Negotiating tips.
   • Know when the Creditors say Yes or No to your offer.
     
2. Creditors Database helps you with the address and other relevant information about the creditors. Also check out the mailing instructions for further help.
3. Before fixing the monthly installment, check how much you should Offer to your Creditor.
4. Contact your creditors & give them a detailed explanation of your plan and how they benefit from it. Learn how to negotiate Credit Rating with them.
5. Inform the creditors that you are sending this offer to all of your creditors and the ones who accept the offer first will be paid off first.
6. Keep records of acceptance letters and send in the amounts agreed upon ASAP, requesting a receipt stating "paid in full".
7. Repeat this process each month and go on adjusting your debt settlement offers upwards.
8. Send in offers of paying back higher percentage of the outstanding balance to your creditors as you have fewer debts left to pay off.
9. Repetition of this process each month will make you debt free soon.
10. Don't forget to obtain a fresh Credit Report once every year to keep you updated.

Hope this section helps you & comes handy in your mission to become debt free. This section is constantly being updated & we look forward to your active participation & suggestions in it.