Negotiate Unsecured Debt - How To Win Points With Your Creditors And Get A Better Settlement Deal

Debt settlements are specially prepared by the US Government to help borrowers to get rid of their debts

. The new policies adopted by the US administration states that every American citizen who has debts more than $10,000 has the right for debt negotiation with his creditor. There are many facts which most people are not aware off. The most important fact about debt settlement is that only unsecured debts can be settled i.e. debts against which you have not mortgaged any of your property such as house, cars, etc.

For you to get a better deal out of your creditor while debt negotiation, keep the following points in mind:

1. Contact a settlement company:

The first thing you should do while planning a debt negotiation is to approach a settlement company. Financial settlement companies have a professional approach towards your case. They know the pros and cons of the system and they will take all the actions that are necessary to get the best deal. The most beneficial point for approaching settlement companies is that they work on contingency basis which means they will only get paid if the settlement is successful.

2. Know your rights:

You can get the best deal out of your creditor only if you are fully aware of your rights. There are new government policies according to which all American citizens has the right to settle their debts, only if the total loan amount they owe is more than $10,000. In addition the law passed by the federal trade commission prohibits the debt settlement companies to take any upfront payments from their clients. This is a huge plus point for people looking for reliable services in the field of debt negotiation.

3. Threat of filing bankruptcy:

If you are unable to get a debt settlement which is quite reasonable for you to pay off, you can always use the threat of bankruptcy with your creditor. Creditors prefer a settlement over bankruptcy. As in debt settlement they get some amount of their debt back in a single onetime payment; where as in case of bankruptcy they get nothing.

4. Creditors want to negotiate debts:

This is the most important factor to keep in mind. Creditors get various tax benefits and subsidies from government in lieu of debt settlement with its clients. The amount which they deduct from the debt is received back from the government in face of tax deductions, etc.

Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:

Negotiate Unsecured Debt - How To Win Points With Your Creditors And Get A Better Settlement Deal

By: archerfraizer

POST COMMENT

Negotiate Credit Debt - 4 Strategies To Locate A Debt Settlement Company You Can Trust Believe Beyond Chapter 7 For Credit card debt Elimination Personal Debt Relief Solutions - How to Get Free Help With Your Credit Card Debt Credit Card Debt - 3 Reasons More Americans Are Now Settling Credit Card Debt Reduce Credit Card Debt Interest Rates and Settle Your Debts For Less Credit Card Debt Relief - How the Bad Economy Helps You Settle Credit Card Debt Credit Card Debt Relief - How Obama's Tax Breaks Can Help You Settle Debts No Credit Check Personal Loans - The Easy Loan Credit Card Debt Settlement - How You Can Eliminate Credit Card Debt By 50% How do I build my credit if I have no credit? Credit Card Debt Relief - Why the Debt Settlement Process Is Now Legitimate Credit Card Debt Relief Options - How to Capitalize On the Recession to Negotiate A Lower Payment The Importance of Accurate Credit Card Debt Information