Debt Settlement Deals - How to Get the Most Favorable Debt Settlement
Debt Settlement Deals - How to Get the Most Favorable Debt Settlement
Negotiating a debt settlement with the creditors is one of the preferred methods of debt relief in these times of recession. However negotiating a settlement is a difficult art and requires professional help. You can either speak to the creditors on your own or go through a debt settlement company.
Although settlements have become popular instruments of debt relief it may take a lot of cajoling and convincing your creditors to make them agree for a settlement. The process will usually consist of two parts. First is the making sure that you are eligible for a debt settlement. The second part is negotiating an actual deal in your favor with maximum benefit.
The Credit card company needs to be fully convinced that you have no other means of clearing the debt than bankruptcy or a debt settlement. Let us take the case of Laura who had three Credit cards. She had piled up a debt of $12,000 on one Credit card. She was careful with the other two cards and collected a debt of $1000 on the other card and remain current with the third card. There was no amount due on the third card. When she asked for a debt settlement for her first card, naturally, the Credit card company objected. Their point of view is that if Laura could find money to pay for the other two cards she had adequate money to pay for the third as well. Thus you have to fully convince the creditors that there is no option open to you and you are heading the bankruptcy way.
The next part is the negotiation of the total amount of money to be paid. Here the settlement company that you hire needs to act tough and ask for at least 50 percent waiver of your outstanding amount. You can offer a percentage of the savings as fee to your settlement company. This will act as an incentive for them to obtain waiver on the maximum amount. You can also offer a cash bonus it the amount waived is more than 50 percent.
So, broker the most beneficial deal for your debt.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.