Negotiating With Creditors- How Will I Know If The Credit Card Companies Will Settle?"

Negotiating with creditors occurs every day

Negotiating with creditors occurs every day. During fourteen years of negotiating credit card debt on behalf of my clients, I've only witnessed six accounts that either the lenders refused to settle, or negotiated a payment plan. And I've negotiated over 2,500 accounts.

Why such a very high ratio of settled debts? Am I that good?! The answer is...no.

Credit card companies are similar to any other "for profit" business. They want to maximize profits. And by not settling with struggling debtors, they are not maximizing profits. Also, by not settling with credit card companies, overburdened debtors are also losing out.

By not settling with a consumer's delinquent account, the creditors are left with three main options. All three alternatives are not promising:

1.Do nothing by walking away from the account and hope someday the debtor pays the debt.

2.Resell the delinquent account to a debt collector for a much lower price

3.Sue the debtor.

The Credit Card Companies Are Foolish if They Dont Settle

For starters, if the creditors do nothing, odds are slim that they will get repaid. Since consumers arent legally liable to repay old, defaulted accounts, most individuals don't see the logic in paying off the account. They reason to themselves "why should I pay it when I'm not legally responsible for that account anymore?

Next, if a creditor sells the debt to a debt purchaser, the creditor will only receive about 5-25 cents on the dollar. Not very attractive., On the other hand, if your creditors settle with you, the average settlement is about 50%. That means that the creditor collects an average of about 50 cents on the dollar-much more profitable than selling your account the account to a debt collector and only getting 5-25 cents on the dollar, right?

Last, if a creditor sues a debtor that doesn't have a substantial amount of assets, the courts may or may not require the consumer to repay the defaulted (unpaid) debt. The courts use income and expense guidelines to determine if the debtor may qualify for chapter 7 bankruptcy, which is "debt forgiveness" . If the court permits the debtor to file chapter 7, then the debt collector will receive nothing. In fact, the creditor actually incurs a loss because of lawyer fees, court costs, etc.

The vast majority of creditors would much rather settle than sue. It's much too risky to sue. Besides, even if the creditor wins a judgment from the courts against a debtor, there's no guarantee that the creditor will ever get repaid. In that instance, the creditor will be in a worse situation than before-having spent thousands in attorney, court and administrative fees, and still not be able to collect from the borrower.

For these reasons alone, negotiating with creditors simply makes dollars and sense!

Debt Free Solutions is a debt consulting company located in Long Beach, CA. We have been in business for 10 years. We assist Americans across the U.S. to eliminate excessive credit card and other unsecured debt.

We utilize various programs and strategies to aid them in dissolving their debt in the quickest, safest, and most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.

We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply settle your debts on your behalf with your creditors- nothing more.

On the other hand, we provide free services to significantly help to minimize the risks that are involved in negotiating with your creditors.

First, we offer a free, no-risk 10 day trial service. During our free trial, we negotiate with your creditors on your behalf to lower your interest rates. Also, we research to see if you have any old debts that you are not legally liable to repay. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.

Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!

Also, we offer free attorney consultation (a maximum of five sessions) in case one or more of your creditors makes any threats.

Last, we provide a written guarantee that our clients creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.

Our services are competitively priced- and include the above free services!

www.debtfreesolutions.mobi

(800) 668-8090

by: Joseph Hernandez

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