Are mounting debts putting you under stress? Are you thinking of filing for bankruptcy as the last resort? Give debt negotiation services a chance, and you just might feel you got yourself a great deal.
Debt negotiation allows you to settle your debts for all your unsecured loans, through a lump sum payment. While your creditors have the guarantee of recovering their money, and avoid bankruptcy or debt collection agencies, which actually work out to be very expensive for them, you actually have a great deal at hand too.
Think of it as a discount. In return for an assured payment, your creditor agrees to write off a part of your debt and settle for something much lesser, so that they recover a part of the money at least. You can hope to get a 25-75% reduction on your debts, depending on your lump sum, and how you manage to negotiate the whole deal.
If you’re already dismissing it as being too tiresome and time-consuming, you have the option of getting debt negotiation services.
Debt negotiation services – 9 facts that you should be aware of
1. A debt negotiation allows you to hire experts to do all the work for you, at a fee of course. The Internet as usual should come to your rescue and help weigh the various options available.
2. Once you’ve picked the company best suited to take care of your debt negotiations, make sure you don’t just talk to them over the phone. The best thing to do is to sit down together, and see how they can work for you, and make realistic estimations of how much you owe your creditors and how much you’re willing to settle for.
3. You may be required to pay a lump sum from which your payments are negotiated and paid off, and a sum charged as fees. In case you don’t have enough resources at the moment, the company providing debt negotiation services helps you set up a savings fund which goes towards the payment of your debts.
4. In case you don’t have enough funds, then they help you save enough through a trust and when enough funds have been gathered, they take care of all your debts one by one.
5. A debt negotiation/settlement company will work best for you if you don’t want to get into the whole mess yourself, and want somebody to do the talking or negotiation for you.
6. Debt negotiation and settlement services scams are not unheard of. Before you take your pick, remember to exercise caution and choose wisely. Try and find out about the company you intend to hire, the kind of experience they have, the people they have successfully bailed out, before you entrust them with your money.
7. Since you stop making payments to your creditors and credit card companies, ensure that you don’t get burdened with late fines and fees as well. Discuss this with your debt negotiation and settlement services provider so you don’t end up owing your creditors even more than before.
8. Once you’ve hired debt negotiation services, it is advisable to not just sit back and relax, but monitor their work. If you get more involved, you may be able to push them for a better settlement, rather than a third party working on your behalf.
9. For many people, taking care of their debts themselves works better, especially if they’re looking to save money on the fees. Consider the option of doing it yourself before you hire debt negotiation services.
Your debt settlement and negotiation services team comprises experts who know their work well, and usually try and cut the best possible deal for their clients. However, you will surely discover some “Shocking Facts” about debt negotiation services and you should choose them with great care.