If you are in serious financial trouble because your debts are increasing each day, you are struggling with repayments and creditors are sending letters every week or calling regularly then you may be considering filing for bankruptcy.
Debt Negotiation is an option many can take that can often be used as an alternative to bankruptcy.
What is Debt Negotiation?
Debt negotiation is a form of debt consolidation to reduce and eliminate debt. Debt negotiation happens between the creditor and yourself to find a compromised amount to settle on. As the creditor is experienced at this, it is often a good idea to engage the services of experienced debt negotiators.
The negotiated debt is normally paid as a lump sum which gives the creditor a reason to be flexible.
The result of debt negotiation is usually for an amount that is less than the full amount owed.
How does Debt Negotiation Work?
Debt negotiation only works if your creditors agree to settle for a lesser amount. Debt negotiation results in you having to pay a lesser amount. As the entire process is a negotiation, there may be several stages to the proceeding before a settlement plan is agreed upon.
Debt negotiation specialists take the emotion out of making a decision and they are skilled at negotiating with creditors. They are experienced with the process & have established relationships with most lenders which assist's them in achieving a beneficial outcome. The creditor knows the negotiator has had a good track record of successful payouts and ensuring results. That is one of the reasons they why they will be able to help you.
How can credit companies write off debt?
Always remember that the debt you owe is mostly profit for the credit companies. The principle you once owed many years ago may have been paid off many times over. If you are willing to make a lump sum payment as a full and final payment for your debt, often the credit company will take this offer if the terms are favourable. Debt negotiation can be a win-win situation for all the parties involved.