Debt Settlement Negotiation: Getting What You Want

Struggling with credit card debt collection harassment or facing rude, abusive debt collectors? If the answer is yes, now’s the time to consider striking a deal with your creditor. However, there’s more to debt settlement negotiation than simply calling up your creditor or debt collector on the fly. You need to cook up an excellent plan and execute it perfectly to get exactly what you want at a term you agree with. Below are practical tips you should know about debt settlement.

There are various ways to settle debts. Whichever way you choose to do it, make sure that you have the money to stick to the agreement you made with your debt collector.

Determine Your Budget

Make sure you have sufficient funds before you initiate any negotiations. If you got multiple debts, it’s best to divide the funds you have reserved for repayment so you can settle as many as you can. Don’t let one unwilling creditor or debt collector get in the way of settling other debts you own.

Determine What You Can Afford

Next, make sure you determine what amount you are comfortable with paying each month. Never exceed your budget because this will only make it hard to stick to the agreement. Debt settlement is a process; don’t be in a rush to get everything done without looking into it thoroughly. Check your finances, old and new debts and start crunching numbers.

Start Negotiating

Contact your creditor or the debt collector and let them know that you want to settle the debt. You can give then an idea how much you can afford to pay in lump sum or on a monthly basis. If they are not willing to settle the debt, compromise. If you got multiple debts, move on and contact the next creditor.

Get Everything in Writing!

This is the most important step. You cannot expect your creditor or debt collector to stand by their word. Make sure to request a signed written confirmation of the settlement agreement and sign it as well. If they failed to provide a written settlement agreement, don’t pay the debt.

Most debt collection companies and original creditors actually prefer to have debtors settle the debts because this is the easiest ways to get their money. In a perfect world, the debt collector or the creditor will agree to mark your outstanding balance as settled but it would be better if the debt is marked as paid. The good news is, sometimes creditors will actually agree to mark the debt as paid but this will depend on how the negotiations went.

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