subject: Debt Negotiation Tips - How to Negotiate With Your Creditors to Eliminate Credit Card Debt [print this page] Debt Negotiation Tips - How to Negotiate With Your Creditors to Eliminate Credit Card Debt
Debt negotiation tips provides a consumer with much more than buying extra time to pay back the debt. It also helps the defaulter to get a discount on the debt which sometimes goes up to 50% or, even 60% of the total payable amount. Credit cards have been responsible for creating a lot of debt in the economy. The presence of plastic money increases the urge of a buyer to spend on more things than necessary not realizing the consequences.
Once the damage is done, and realizing the fact that paying the amount and the added interest is impossible, a consumer should choose debt negotiating with the creditor over declaration of bankruptcy. There are a few effective debt negotiation tips that one should bear in mind if he or, she wishes to eliminate credit card debt or, reduce it to a certain extent.
The first step one needs to take for debt settlement is to call up the concerned company and put forward his or, her plans of payment. For doing so it is necessary to keep all important details like last bill, letters from the creditors, letters to the creditors etc close at hand. Calling up the creditor will give them the impression that the debtor is willing to pay the due back and will be easy with him.
There are some collectors who will refuse any kind of negotiation and press on for the entire amount. In such a situation one may ask to speak with the head of the department or someone in charge. These people are more reasonable to deal with and are not as foul mouthed as the general callers.
If any settlement is reached then it should be taken in writing from the creditor. Chances to eliminate the credit card debt may be remote in this case but reduction to about 50% or more is possible. Verbal contracts are more prone to breach.
A very important debt negotiation tip is that one should wait till the debt is reduced by more than 50%. It is first necessary to find out if the debt is still with the original creditor. In most cases it is not. Collection agencies buy the debt in less than 7 cents per dollar. So, if they ask for more than the amount due, one should refuse on the face. The initial bargaining should start with offering to pay less than 25% which will also amount to a huge profit to the collection agency.
The government has also lately been implementing many debt relief laws and regulations that a consumer can take advantage of. In case of a settlement fiasco, there are numerous debt settlement agencies that can negotiate on behalf of the debtor.
It is not easy to eliminate credit card debt totally unless the consumer files bankruptcy. But that too will not settle the issue because the zombie debt collectors still exists among us. If the Statute of Limitation is not over on the debt then these collectors may come back to harass the person concerned. So, it is best for the consumer keep these debt negotiation tips in mind and opt for a reasonable settlement with the creditors.
Debt settlement companies are widely available in just about every state however some are just flat out more experienced than others in debt negotiation. That's why it's so important for consumers to use debt relief networks. These networks qualify and only accept the best performing debt settlement companies.
