Negotiating Debt - 3 Powerful Tips To Negotiating Debt

Negotiating debt is no hard task, you just need knowledge

, and skills on where and how to begin. If you approach debt settlement with the right plan, you can save thousands of dollars. Listed below are a few tips on how you can start the process.

Negotiating debt Tip 1

Which accounts should I settle first?

Before contacting the creditor, review your credit report to determine which accounts should be negotiated. Look for charge off accounts, debts that have been sold to a third party collection agency and old judgments.

Negotiating debt Tip 2

Why is the federal statute of limitation so important?

The statute of limitations is critical because you may be paying for an old debt that has passed a deadline and is getting ready to fall off your credit report. Take a look at the date the account went delinquent and then look at the federal statute located in the appendix. If the statute has expired, it's time for the negative item to come off of your credit report. Now, view your outdated accounts again focusing on the date of last activity. Review your state statute located in the appendix to see if your debt has expired. If so, the creditor can't collect by way of suing you for a judgment, but they can still continue their collection efforts.

Negotiating debt Tip 3

Ok, now I want the creditor to prove that it's my debt.

Right before you settle, write to the creditor a letter asking them to provide you with written proof that you owe the debt. Ask them to send you the original application bearing your signature. Federal law requires creditors to provide proof upon request by the consumer. Give the creditor 16 days to respond to your request. If they don't write back, send the creditor bureau a letter asking for a deletion because the creditor can't prove that you owe the debt. Write the attorney general's office in the creditor's state, and let the attorney general know that the creditor is reporting negative information on your creditor report even though they can't prove that you owe the debt.

Concluding, these are just a few tips on how to begin the debt settlement process. Completing these steps first before negotiating makes a world of difference on how much money you offer.

by: Mark Clayborne

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