subject: What To Do When Negotiating Your Debt Settlement [print this page] You may have hired specialists to take care of your debt settlement, or you may be handling the negotiations yourself. Whatever the case is for you, there are some things you must keep in mind before, during, and after the settlement process.
Before negotiating your debt settlement, you must make sure that you have enough money to shell out once your creditor agrees to settle and asks you to shell out a portion of the original debt. Do not use your emergency savings for this; it is also a bad idea to take a cash advance from your retirement account. Its too high a risk to take to lose all the money you have for debt. You must also note how much your debt settlement firm is charging you for the process and what their terms are. This is the best time no know but not really the best time to start paying them.
Once negotiations start, or even before that, exert a lot of effort in avoiding any more debt. Dont make any more purchases using your credit cards. You must secure updates from your negotiator on paper, to keep tabs on whats happening with the settlement. Always keep in mind that nothing is final until its officially declared on paper. Also, it is wise to prepare for yourself some sort of backup plan, in case your creditor does not agree to settle.
While you are
negotiating debt settlement, especially if you are on your own, it is a good practice to hagglethat is if you can pull it off properly. However, if you dont think you can do it, dont.
After you are done negotiating debt settlement and your creditor agrees to settle, be sure to make your payments prompt and true to the agreed terms. This can save you from getting into much bigger trouble.
And although it is best to leave the process of negotiating debt settlement to specialists, there are cases where a consumer chooses to be on their own. In cases like this, it is best to have access to legal advice whenever possible, to avoid misguidance and misunderstandings, especially in situations where technicalities are involved.
by: Ethel Schaaf
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