Negotiate a Credit Card Debt Settlement – Negotiation Strategies to Help You Reduce Debt
Posted on August 15, 2009
Filed Under Finance | Leave a Comment
Turn on your radio or television, and chances are you will hear advertising for companies who will negotiate credit card debt settlements for you. The reality is, however, that you can do this on your own, and you should at least make attempts to negotiate to reduce debt payments before turning to one of these companies.
While some of the companies offering these services may be legitimate and helpful, there are many that are scams only out to get as much money out of you before they close up and move to the next town. Many of these companies will charge you very large up front fees ($1000 or more) just to start a negotiation process, and the process they take is a little controversial.
Chances are they will tell you to start sending them money, and stop paying your bills altogether. The theory is the creditors will begin to get desperate to recover some cash, and will negotiate a settlement arrangement. If this is a path you choose to take, why pay someone else $1000 or more to do this when you can do it on your own?
That said, here are some tips you can use to negotiate a settlement or reduced payment plan on your own:
- Remain Calm and Professional – If you have been paying any amount on your debt, then your initial query into a settlement will likely fall on deaf ears. The creditor has limited incentive at that point to accept less money, as your payment history indicates you have funds available. It is very likely you will be dealing with collection calls frequently, and these callers are trained to elicit an emotional reaction from you. These conversations are all recorded, so it is best to remain calm and professional in any conversation.
- Explain Your Situation & Willingness to Cooperate – Being honest and forthright regarding your payment situation will go a long way in building a working relationship with your creditors. They are much more willing to work with someone who wants to work a legitimate deal and is professional in approach.
- Understand Your Rights – If you are dealing with credit card debt, know that this debt is likely unsecured debt. Meaning, there is no collateral that can be called by the creditor. In other words, you will not lose your house or car because you are not able to pay your credit card bills. The only exception case, and even then unlikely, is if your credit card is at the same bank as your mortgage or car loan.
Dealing with creditors can be a painful process, and the emotional strain it can take on you can feel overwhelming. However, do some homework, know your rights, and you can negotiate your own settlement plan without spending a fortune on outside help.
One other resource that can be of huge help to you in getting out of debt is the guide available at UltimateDebtEliminator.com.
This guide is full of information, tips, strategies, and advice to help you reduce monthly payments and get out of debt relatively quickly. Get more information here: UltimateDebtEliminator.com.
Related Posts
Comments
Leave a Reply
Blog Links
