Debt Settlement Information - How Is A Lump Sum Debt Settlement Negotiated?
If you are one of the victims of financial recession that has been sweeping through
and fallen into death trap of debts, then this is the right article for you. Here you will get in brief about debt settlement information and also how is a lump sum debt settlement negotiated?
Let us first understand what debt settlement is all about?
If you are in sever debt and are searching for ways to come out of it, then one of the easiest option available earlier was to declare yourself bankrupt. But because the effect of recession was so wide spread that there arose great strain on the financial system and the creditors came into big trouble.
Hence, the Federal Government issued some laws that made bankruptcy a nonviable option and made debt settlement an attractive option by declaring many sops for those who opted for it.
Under this option you negotiate with the creditors either by yourself or through your negotiator and settle your dues for an amount that is reduced by as much as 40% to 60%. You can then pay off the remaining amount either as lump sum or in monthly installments.
Now the next question that arises is how is a lump sum debt settlement negotiated?
You can negotiate your dues either on your own or through your negotiator. While negotiating, please keep this debt settlement information in your mind.
Always be clear, calm, convincing, unemotional and professional in your dealings. Always remember that you need to negotiate with them to reduce your own liability and not them.
Never give up so easily. Always remember that Persistence always pays off. They have to see their bottom and you have to see yours.
Always to remember to have all correspondences in writing to avoid any claims of misunderstanding later on.
If you are unable to negotiate properly, hire a professional debt counselor quickly to negotiate on your behalf. Since, they experience with the creditors, they can convince them much better than you do, by presenting your case professionally.
When negotiating for lump sum settlement always remember some of the following points:
Always remember that before going in for debt settlement, according to the Federal Laws, you should have an outstanding amount of at least $10,000 after debt consolidation to qualify for the debt settlement option.
After carefully analyzing your own financial status, you should be clear as to how much money do you have to pay off as lump sum. It should reasonably be in the range of 40% to 60% of the current outstanding amount.
You have to be ready to answer all their counter offers and counter arguments.
If you're past payment history is good, and you have suddenly landed into problem then the creditors have a sympathetic outlook towards you.
As you would be paying off your revised dues as a lump sum you can always for some major benefits. Some of them are: You can always ask to remove the word 'settlement' from the final copy. This would help you to retain your credit rating.
Also they should not add any negative remark anywhere in the financial system.
So now you know how to use your debt settlement information and lead a debt free life.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
Debt Settlement Information - How Is A Lump Sum Debt Settlement Negotiated?
By: Christopher Boris
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