subject: The Negotiator: How To Manage Your Own Debt Settlement [print this page] The biggest risk in hiring a debt settlement firm to negotiate your unsecured debt is the fact that you do not get any assurance that your creditor will settle until you see it on paper. This is true even if youve already been paying your debt settlement firms fee in increments, while you are building your settlement account. And in the unfortunate scenario that your creditor refuses to settle, you are doomed to lose more money in form of debt settlement fees.
To prevent this from happening, you can negotiate your debt settlement. When you negotiate debt settlement, you have two payment options. First, you can opt for a lowered monthly payment schedule that distributes your debt into smaller increments beginning at a later date. You can also opt to pay a percentage of the debt amount, after which the remaining debt is written off.
Before you even begin to negotiate, you must make sure that you have enough money to settle. You should either have the lowered lump sum amount or money to begin your increment payments and proof that you can continue. The creditor may ask for it up front when you begin to settle.
When you start to
negotiate debt settlement, set your mind on the notion that your creditor has three options, in terms of your debt: to settle and collect a percentage of the original amount, to collect 100% at a much, much later time, and to collect very little or nothing in the occasion that you declare bankruptcy. The best option for your creditor is actually the one you are negotiating for.
As you and your creditor negotiate debt settlement, never agree to nor believe in anything if it is not written on paper. Corporations know their way around agreements, so you better be extra careful. The documents of your agreement must have all the details written out exactly and accurately.
Finally, keep your cool. Negotiations can get emotionally charged. It would be for the best if you remain focused on the settlement. Make sure that you negotiate debt settlement, your debt settlement, with your head in the right place.
by: Ethel Schaaf
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