Creditors hounding you, debt collection companies calling you all day long and mounting debts forcing you to give up all pretence of a normal life? Give the nightmares a miss and get yourself the perfect solution with debt negotiation and settlement. Not only is it the perfect way to take care of all your debts, but also in a manner that will not make your life an endless debt paying cycle.
Debt negotiation and settlement simply means a reduction in your debt payments, provided you pay a monthly minimum, pre-settled amount. Instead of worrying about the full amount, you just have to make monthly payments, and your debts can be reduced to as much as 50%!
Wondering how it works and what’s in it for your creditors? It’s not very difficult to figure out actually. While you have to pay only a monthly payment, and your debts are also reduced, your creditors have the assurance that their money will keep coming in regularly. Your creditors will be open to debt negotiation and settlement because they would want to avoid you filing for bankruptcy at any cost. That way they just end up losing all his money, and you have a blotched credit report for life. Debt collection companies also charge very high fees, and so are not the favorite option for creditors.
Negotiating debt settlement
Now that you know what it is and how it works, it’s time to get down to business and negotiate your own debt settlements. You can either get a debt negotiation and settlement company to do all the dirty work for you, or if you’re up to it, do it the old-fashioned way, and save yourself a hefty fee.
Hiring a debt negotiation and settlement company
The good thing about this option is that you don’t have to do the haggling yourself, and leave it to the experts. Most of them promise you a significant debt reduction, and even help you form monthly payment plans, so you can get back to using your money for other things, besides paying back your debts. Also, they take care of almost all your unsecured debts saving you the effort of dealing with each individually.
On the flip side, you will probably end up paying a fee, so you do end up spending some more money getting out of the mess.
DIY might be your preference
If you have great negotiation skills and loads of patience, the do-it-yourself way for negotiating your debt settlement will work out to be much cheaper because you save yourself a substantial sum, which you would have to shell out as fees. Also, since you’re doing it yourself, you will give it your best shot. With a company, you also have the inkling of a doubt, that they could’ve settled for lesser. Even though it may be a little time consuming, but many people have done it themselves, and pretty well at that!
Here are a few tips that you should keep in mind before you try a debt negotiation and settlement:
1. If you’re looking to hire somebody to do it for you, make sure you put the Internet to good use. Don’t just settle on whoever’s charging you the least. Testimonials, recommendations, experience, everything counts.
2. If you’re doing it on your own, figure out what kind of monthly payments you want to make, and how much you’re willing to negotiate for first. Debt settlement and negotiation decisions should not be taken at the spur of the moment. Instead, have a plan and stick to it!
3. A debt negotiation and settlement is the preferred choice of your creditor also, so don’t let them take the upper hand. Don’t be scared to call them up and work out the whole thing yourself.
4. Debt settlement companies may require you to pay a lump sum account as final payment for all your debts, or form a monthly plan. In case of the latter, make sure you’re on time with your payments. Huge fines and extra charges will come your way otherwise.
5. Whatever method you choose, debt negotiation and settlement is definitely better than bankruptcy. Weigh your options, and pick whatever is best suited to your needs.