Would you like to negotiate settlements on your debt accounts? You might believe that you have to pay a firm to negotiate a debt settlement for you. However, if you can talk, read, and write, there is nothing they can do for you that you can’t do for yourself.
Follow these important tips if you want to do the negotiating yourself and save some money. With skillful negotiation, it’s possible to get your debt reduced by as much as 75%!
Not paying your debts in full will have serious negative repercussions on your credit report. But keep in mind that continuing to be late with your payments can be just as bad.
It will be more difficult to get additional credit in the future for a while, and the account that you’re settling will be cancelled.
Be sure your negatives don’t outweigh your positives.
As long as you’re making payments, your creditors won’t work with you on a settlement. You’ll need to miss some payments first.
They must think that a settlement is the only way they can get paid.
For example: that you plan on declaring bankruptcy if you can’t reach a compromise (wherein they might not get paid at all)
Just like the used car salesman never gives you his best deal at first, your creditor will hold back initially. Have the patience to wait them out.
You should be able to settle for paying a maximum of 50% of the principal at the time you first started defaulting on your payments.
Don’t ever write a check based on a phone conversation. Be sure everything is in writing and on company letterhead.
Many people have thought they were settling their debt, only to realize that they had been mislead and were merely making a payment that was applied to the original balance.
Settling your debt is something anyone can do; you don’t have to pay thousands of dollars to a debt settlement firm. It may seem nerve wracking, but remember that the person to whom you’re speaking does it all day, every day. If it’s your only option besides bankruptcy, be aggressive and patient.
Be certain to get everything in writing. What is said on the phone means little, unless you can prove it. Follow these tips to get your best deal. You really can do it yourself!
FURTHER READING:
Your Action Plan to Financial Freedom
The New Green Family Guide: A Beginner’s Guide to Going Green As a Family
