Debt Settlement
can be very beneficial if done right. It can provide financial
relief as
well as improve a consumers credit rating. But be careful if you
are planning to
negotiate a settlement with a collections company or creditor on
your own.
Just because you reach an agreement on the amount and settle the
debt, your
credit report will still show derogatory information for that
account.
Also keep in mind that if decide to settle your debt, you
will have to pay
out the full agreed amount, which is very hard for most who are
experiencing financial difficulty.
An alternative is to use a professional
Debt Settlement Company
that can
negotiate the best terms as well as provide you with the comfort
of
low monthly payments.
NOTE:
You should not try Debt Settlement if your
accounts are current or if you
are just starting to fall behind. In such cases, a
Debt Consolidation
program will
benefit you most.
In order to
settle a debt in your favor, two big objectives must be
accomplished.
You must get the creditor to make a deal with you on the amount
and negotiate
your credit rating in your favor. Don’t worry; it’s the easiest
thing when you have
the knowledge.
First you must
always remember that in settlement negotiations, you always have
the natural advantage. You have what the creditor wants!
So the first rule of
thumb is to never sound eager to settle. Regardless of how much
you owe on the
debt, you want to pay what is comfortable for you. There have
been thousands of
people who settled their debs for as little as 25 cents on the
dollar, although 50%
of what you owe is considered pretty good.
At first, most
creditors and collection companies will try to hold their
ground.
Never accept their first or even second offer.
Always be calm and make them think that if they don’t get
something from you,
they will probably never get anything at all.
Of course, the older the account the easier the negotiations
will be.
FREE
PROFESSIONAL DEBT SETTLEMENT
SERVICE QUOTE |
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Designed to assist
consumers in a financial burden become debt free
and avoid bankruptcy. A Debt Settlement Program can:
•Save
consumer up to 75% of their total unsecured debt
•Reduce
monthly payments by up to 50%
•Average
consumer is debt free in only 2 – 3 years
•Reduce
creditor harassment
•Help
consumers avoid bankruptcy
•Alleviate
the stress of dealing with annoying creditors
•One
easy monthly payment
Simply
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to fill out a short form for a free consultation
|
Keys to a
successful Debt Settlement
- Make your
first contact with the creditor or collections company by
mail.
This will always give you the upper hand because they will
end up calling
you to settle. Remember, you want them to come to you
because you have
what they want.
- Never
sound eager to settle or you will lose the upper hand. Never
tell them
that the reason you need this debt settled is so you can get
into your dream
home or car. If you do, you can forget about any kind of
deal. The creditor will
now have the upper hand and insist on the full amount.
- Don’t
accept their first offer, especially the first time they
call you after you
sent the initial letter. Once you are able to get them down
to about half of your
debt. Tell them you need to sleep on it and arrange a time
for them to call you
the next day.
- Once you
and the creditor agree on a mutual amount to settle the
debt,
you must start negotiating your credit rating.
This is a very important part of your negotiations. A “Paid
Collections” on
your credit report is still very negative and a “Settled
Account” is even worse.
Before you pay the debt, you must have in your hands a
letter from the creditor
stating that the account will be reported to the credit
bureaus and updated to
“Paid as Agreed”
Remember that all your negotiations and money
paid to settle will do nothing to
rebuild your credit, unless you have a guarantee in writing that
the unpaid collection
will be changed to “Paid as Agreed” on your credit report. Not
“Settled”
Richard Jackson
Senior Debt Consultant
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